maritime values - rickmers group€¦ · the rickmers group is an international provider of...

MaritiMe Valuesa n n u a l r e p o r t 2 0 1 3

our financial year 2013

Key performance indicators for the Rickmers Group in € million 2013 (IFRS) 2012 (iFrs) Deviation

revenues 578.6 648.0 -10.7%

eBitDa 191.8 274.6 -30.1%

net income 1.5 10.7 -85.8%

Cashflow from operating activities 194.5 231.4 -15.9%

Balance sheet total 2,524.3 2,675.0 -5.6%

equity 569.4 553.7 2.8%

equity ratio in % 22.6 20.7 1.9 pp

Financial debt* 1,719.8 1,820.9 -5.6%

net financial debt** 1,575.0 1,748.8 -9.9%

number of employees (average)*** 3,378 3,490 -3.2%

Maritime assets

revenues 374.2 390.8 -4.2%

eBitDa 240.5 298.1 -19.3%

net income 59.7 33.9 75.8%

number of employees (average) 45 44 2.3%

Maritime services

revenues 115.9 151.9 -23.7%

eBitDa 3.3 5.0 -34.5%

net income 4.1 5.0 -19.0%

number of employees (average)*** 3,007 3,170 -5.1%

rickmers-linie

revenues 190.4 212.7 -10.5%

eBitDa -33.5 -17.9 -86.7%

net income -34.1 -18.7 -82.6%

number of employees (average) 198 178 11.2%

* sum of bank liabilities plus bond liabilities ** sum of bank liabilities plus bond liabilities, minus cash and cash equivalents *** including employees at sea from external crewing agencies

the rickmers Group is an international provider of services for the shipping industry with its business segments Maritime assets, Maritime services and rickmers-linie. We have a reputation for reliability, quality and efficiency. adaptability and an entrepreneurial mindset have been a family tradition at rickmers throughout its nearly 180-year history.

We operate a fleet of 102 ships, with almost 2,900 seafarers and currently over 500 staff ashore. a total of 114 companies have been included in the consolidated financial statements, prepared this year in accordance with the international Financial reporting standards (iFrs) for the first time. the rickmers Group is internationally represented through more than 20 offices and over 50 sales agencies. this network and a strong global management team secure the success of the company, which remains true to its core values: leadership. passion. responsibility.

2 Markets

as markets grow and are increasingly interlinked, shipping continues to grow too, so that now more than 90 percent of global freight is transported by sea. With its fleet of 102 vessels, the rickmers Group makes it possible for logistics companies to transport goods around the world.

shipping, the link between world markets

rickmers Group

3Marketsannual report 2013

6 preface 9 Foreword 14 executive Board 16 extended Board Committee 18 advisory Board 24 Business activities of the rickmers Group 26 Maritime assets 32 Maritime services 40 rickmers-linie 47 Group management report 81 Consolidated financial statements181 Further information

Contents

6 preface

Bertram r. C. rickmers is the Chairman and sole shareholder of rickmers Holding.

preface

rickmers Group

7preface

the rickmers family has experienced the cycles of the shipping market through its highs and lows for over five generations and nearly 180 years. For about six years now, shipping has again been in a new trough from which it has still to emerge safely. Given this challenging environment, i am proud of what we have achieved together in the past few years.

i firmly believe that the future belongs to those who dare; just as it was in the era of the great discoverers. some of them knew the exact course they were following - not all. as different as their motivations were, one thing unites them: their courage, their resoluteness, their perseverance. on the path to success, the first step is not only the most important, it is also the most difficult. to be a pioneer in a field you have to have the courage to tread new paths. the past year taught us that the opportuni-ties opening up here outweigh those that close. it is only in this way that we were one of the few German shipping companies that were able to invest in new projects with financial partners on their side last year. in this context we should also mention our bond which was successfully issued in 2013.

We now need to be resolute in pursuing the course we have plotted; not an easy task given that we are still not free from the negative influences that plague the entire, somewhat be-calmed, shipping market. the impact on each of our three busi-ness segments varies. nevertheless, we have still managed to achieve a positive result.

annual report 2013

8 preface

Bertram r. C. rickmers

in the light of the special funding problem inherent to Ger-man container and heavy lift shipping, we paid special atten-tion to aligning our accounting with internationally recognised accounting standards (iFrs). to provide a system of effective monitoring for their cross-border investments, the increasing number of international investors need comparative informa-tion based on a capital-market focussed reporting method. From an internal perspective too, a groupwide harmonisation of accounting was necessary, particularly in respect of our in-ternational companies.

Beyond this, we have instigated structural changes to our shipmanagement organisation and are working on a variety of measures to reduce fuel consumption. the latter has already led to fuel cost savings for us and our charterers as well as to contributions to environmental protection by reducing Co2, sox and nox emissions.

With the rest of the global rickmers Group team and you, our highly esteemed business friends, at our side, i can but view the future with confidence.

Yours sincerely,

rickmers Group

9annual report 2013 Foreword

Ladies and Gentlemen,Dear Business Partners,

Many important developments took place at the rickmers Group over the last year and have led us to a position unique in the German shipping sector.

one of these developments was the successful implementation of a strategy to recapitalise the rickmers Group, which allows us today to invest in promising new projects. this is a signifi-cant achievement against the backdrop of a shipping sector in a downturn for most of the last ten years and continuously volatile markets. the successful issuance of a corporate bond in the european market in June 2013, with follow-up issues in november 2013 and March 2014 to total € 250 million, was a milestone in this process. the bond was not only a first for the German ship-owning sector in the small to medium-sized company segment, it was also one of the largest issues in the overall German medium-sized business segment.

the transformation we went through in order to get to this point not only allowed us to access the bond market, but also opened up further opportunities for us in the capital markets. the rickmers Group increased its appeal to new investors by offering a combination of shipping know-how and a high degree of financial transparency. this led, for instance, to a joint venture between the rickmers Group and funds affiliated with apollo Global Management, llC, referred to as apollo; this joint venture has a capacity to initially invest up to usD 500 million

Foreword

10 Foreword

in second-hand container ships, but may also be expanded to include newbuild tonnage and other ship-related investments. additionally, we are providing asset and shipmanagement ser-vices for these joint venture vessels.

Moreover, the rickmers Group approached the asian financial market in the past financial year. rickmers Maritime, listed on the singapore exchange since 2007, launched a rights is-sue and announced the establishment of a multi-currency medium-term note programme that may be issued in several staggered tranches. asia, with its strong economic growth and growing importance to shipping in general, will be an area of greater focus for the rickmers Group going forward. During 2013, singapore subsidiaries of rickmers reederei and rickmers-linie were incorporated and rickmers asia pte. ltd. was added to the group of consolidated companies in the course of full consoli-dation. Besides this, the joint venture between the rickmers Group and apollo – named a.r. Maritime investments – was also incorp orated in singapore.

With its headquarters in Germany and now a regional head-quarters in singapore, the rickmers Group has orientated it-self further towards the global markets and has opened up to international investors. Given this more global focus, we elected to shift our accounting standards from German Gaap (HGB) to iFrs. We have successfully implemented iFrs in order to publish our 2013 results in this new financial reporting environment. this not only enables investors to compare rickmers Group’s results with those of other international companies, but also harmonises the accounting standards used for the Group with those used for the rickmers Maritime trust, which has been fully consolidated since the 2012 annual report.

rickmers Group

11Foreword

the rickmers Group’s 2013 performance reflects the continuing cyclical downturn that has negatively impacted the global ship-ping sector over the last six years. this downturn continues to affect the rickmers Group, particularly in the heavy lift/multi-purpose business of rickmers-linie, and as a function of the continuing stagnation of charter rates which has successively impacted the asset business. in this demanding environment, rickmers Group’s revenue declined by 10.7 percent compared to 2012 to reach € 578.6 million. With eBitDa of € 191.8 million (2012: € 274.6 million), net income decreased to reach € 1.5 mil-lion. With an equity ratio of 22.6 percent (2012: 20.7 percent), we are successfully maintaining the Group’s sound financial base.

Within the rickmers Group, the most significant market chal-lenges were the breakbulk, heavy lift and multi-purpose/project cargo business of rickmers-linie. the financial results were im-pacted by low freight rates, capacity utilisation challenges due to weak demand and by the structural overcapacity of tonnage supplied; together, these factors drove fierce price competition, particularly in the traditionally strong europe to asia trade lane. in addition to this harsh competitive environment, two other shipping sectors, bulk and container, continue to be burdened by under-utilised assets. as a result, bulk and container busi-nesses worldwide are also seeking to alleviate their capacity-utilisation situation by carrying cargos that have traditionally been shipped with multi-purpose and/or heavy lift tonnage; this is exacerbating the pressure on prices and volumes and negatively affecting rickmers-linie.

annual report 2013

12 Foreword

to counter these challenges, rickmers-linie extensively expanded its sales network in the past year. this included strengthening the existing office network in america, europe and the Far east, establishing rickmers-linie (singapore) pte. ltd. and the expansion of the sales force and owner’s representatives to new regions such as the Middle east/Dubai, indonesia, Brazil and scandinavia. Furthermore, a new westbound “round-the-World service” was added to the business portfolio, connecting the emerging markets of asia, south america and north america. all of these activities began to show positive progress by the end of 2013, but could not compensate for the significant and con tinued deterioration of ocean freight rates. We see 2014 as another very tough year for the heavy lift/multi-purpose sec-tor, unless a recovery of ocean freight rates begins to take hold. However, at the time of publication a recovery has yet to emerge.

the Maritime assets business segment continues to generate the majority of the rickmers Group’s positive results. in 2013, we con tinued to reduce our exposure to financially non-viable KG-fund ships where the rickmers Group also provided ship-management services. We reduced the number of KG-fund ships under management to 22 by the end of 2013. through our joint venture with apollo, we began to acquire ships in the second-ary market.

the Maritime services business segment undertook major re-structuring processes in the past year, aimed at reducing costs and increasing competitiveness. this included entering a strate-gic partnership with an external crewing partner. Furthermore,

rickmers Group

13Foreword

ronald D. Widdows Dr ignace Van Meenen prof. Dr Mark-Ken erdmann

rickmers worked jointly with the classification society DnV Gl in developing a new class notation: route specific Container stowage (rsCs). rsCs allows operators to load more containers on deck and to accelerate cargo operations in ports, thereby offering a higher degree of loading flexibility. our 13,100 teu container vessel MaersK elBa was the first to implement rsCs. Maritime services is also continuously working on optimising the fleet of the rickmers Group, especially with regard to energy efficiency.

the year 2013 was a challenging year, particularly for rickmers-linie. However, we implemented many positive steps that open up significant options for us in 2014.

We would like to thank our employees for their tremendous sup-port and our customers and business partners for their trust over the past financial year; we look forward to charting a successful course together with them in 2014 as well!

Yours sincerely,

annual report 2013

14 executive Board

From left to right: Dr ignace Van Meenen, prof. Dr Mark-Ken erdmann, ronald D. Widdows, Bertram r. C. rickmers

rickmers Group

15executive Board

Bertram R. C. RickmersChairman Rickmers Group

Bertram r. C. rickmers is the Chairman and owner of rickmers Holding. as of 31 December 2013, he held 100 percent of the company’s shares. the rickmers family can look back on nearly 180 years of tradition in ship-ping. Bertram r. C. rickmers set up MCC Marine Consulting & Contracting in 1982, the nucleus of the present-day rickmers Group. With the revitalisation of rickmers reederei in 1984, the repurchase of rickmers-linie from Hapag-lloyd and its introduction into the Group in 2000, he completed the current shipping and shipmanagement activities of the rickmers Group. rickmers has a degree in economics from the university of Freiburg.

Ronald D. WiddowsCEO Rickmers Group and CEO Rickmers-Linie

ronald D. Widdows has been Ceo rickmers Group and rickmers-linie since 1 april 2012. He has more than 40 years’ experience in shipping, 31 of these years at american president lines and neptune orient lines, most recently as president and Ceo of neptune orient lines. Cur-rently he is also Chairman of the World shipping Council in Washington D.C.

Dr Ignace Van MeenenDeputy CEO and CFO Rickmers Group

Dr ignace Van Meenen joined the rickmers Group as Chief Financial officer in october 2011, and was additionally ap-pointed as Deputy Ceo effective as of 1 april 2012. He is also a member of the supervisory Board of rickmers Maritime in singapore. after studying law in Ghent and osna brück, Dr jur. Van Meenen started his career at Deutsche Bank aG where he held various positions in the finance sector in Germany and the usa. later, he held leading management positions as finance director and CFo at the mining and chemical group raG aG, the international media company rtl Group s.a. and the real estate group DiC.

Prof. Dr Mark-Ken ErdmannDeputy CFO Rickmers Group

prof. Mark-Ken erdmann phD was appointed Deputy CFo of the rickmers Group effective as of 1 July 2012. since 5 December 2013 he has been a member of the execu-tive Board. previously, he was simultaneously Ceo of Bertelsmann Business Consulting, Cio of the Corporate Center and senior Vice president for corporate financial reporting at Bertelsmann se & Co. KGaa, latterly report-ing to the Bertelsmann group’s Ceo. after graduating in economics, he began his career at ernst & Young aG in the assurance and advisory business services division. Fol-lowing executive education sojourns at inseaD and the Harvard Business school, he has been visiting lecturer for the MBa programme at the leipzig Graduate school of Management (HHl) since 2007 and has been a member of the supervisory board of Just software aG, Hamburg, since 2010.

executive Board

annual report 2013

16 extended Board Committee16

the head office of the rickmers Group is located in Hamburg with views of arriving and departing ships on the river elbe.

rickmers Group

17extended Board Committee 17

extended Board Committee

Frank BünteChief Treasury & Risk Officer, Head of Capital Markets

Frank Bünte is responsible for the Group Corporate Finance division of the rickmers Group which includes the treasury & risk and Capital

Markets departments. Following his training in bank-ing with the HsH nordbank aG’s predecessor institution, Hamburgische landesbank, he graduated in 1994 from the savings Bank Business academy, attended on a part-time basis. prior to joining the management team at rickmers Group in 2011 he held a number of positions in the bank’s credit department, latterly responsible for the domestic shipping market.

Björn SprotteGlobal Head Maritime Services

Björn sprotte joined the rickmers Group in 2000 as a nautical officer. Following his career at sea, he held various management positions in the technical and commercial depart-

ments at rickmers reederei and in rickmers shipman-agement. in 2012, he was appointed Managing Director of rickmers shipmanagement (singapore). on 10 January 2013, Björn sprotte was also named Global Head of the Maritime services business segment and Managing Director of rickmers shipmanagement in Hamburg.

Holger StrackGlobal Head Maritime Assets

after an apprenticeship as an industrial clerk, Holger strack joined rickmers reederei in 1997 and worked in various departments and positions in accounting and treasury.

He has been Managing Director of rickmers reederei since 2010 and has been in charge of the newly created business segment Maritime assets since 2011.

Rüdiger GerhardtGlobal Head Rickmers-Linie

rüdiger Gerhardt began his training with rickmers-linie back in 1978.subsequently, he held various positions within the company in the areas of finance, controlling

and personnel. in 2011, he was appointed Global Head of rickmers-linie and became Managing Director of rickmers-linie GmbH & Cie. KG.

Ulrich UlrichsCOO Rickmers-Linie

ulrich ulrichs joined rickmers-linie GmbH & Cie. KG in 2005 and took over responsibility as General Man-ager line Management, becoming a Director in 2008. From 1 July 2011,

ulrichs has been Deputy Managing Director of rickmers-linie. in July 2012, he was appointed Chief operating of-ficer and Managing Director.

annual report 2013

18 advisory Board

Bertram R. C. Rickmers Chairman

Bertram r. C. rickmers is the Chairman of the advisory Board at, and sole shareholder in, rickmers Holding. He set up MCC Marine Consulting & Contracting in 1982 and rickmers reederei in 1984 as the foundation for the current ship own-ing and shipmanagement activities of the rickmers Group. in 2000, he purchased rickmers-linie back from Hapag-lloyd.

Claus-Günther BudelmannDeputy Chairman

after his banking training and holding diverse positions at Bankhaus Joh. Berenberg, Gossler & Co. KG, Hamburg, Claus-Günther Budelmann was made General Manager of the bank in 1981. From 1988 to 2009, he was a general partner in the bank. Claus-Günther Budelmann is a member of various advisory boards.

Jost Hellmann

Jost Hellmann is a law graduate. From 1982, he was re-sponsible for setting up the international branches of the Hellmann Group. since 1989, he has been Managing part-ner of the osnabrück-based group of companies Hellmann Worldwide logistics GmbH & Co. KG. Jost Hellmann is a member of several advisory boards.

Flemming R. Jacobs

From 1960 to 1999, Flemming r. Jacobs worked for a.p. Moller-Maersk in various countries and posts, most recently from 1997 to 1999 as partner and Ceo of Maersk tankers. From 1999 to 2003, he was Group president and Chief execu-tive officer and Director of the container shipping company neptune orient lines, ltd. and Ceo of american president lines (apl). He is currently a member of the supervisory and advisory boards of many companies.

advisory Board

rickmers Group

19advisory Boardannual report 2013

20 represented globally

the rickmers Group is represented globally by its network of international offices and sales agencies. it offers a comprehensive range of services always with an eye on the latest market developments and trends. Besides its head office in Hamburg, the rickmers Group has also established regional headquarters in singapore with rickmers asia pte. ltd. the singapore office serves the growing asian market.

Closer to tomorrow’s customers

rickmers Group

21represented globallyannual report 2013

22 Customers

rickmers Group customer relationships have developed over many years and include many of the most important international charterers. alongside them, new customer groups are being developed; institutional investors are offered the necessary know-how and reliable partnerships to allow joint participation in the potential of the shipping markets.

loyal customer base amongst the top charterers

rickmers Group

23Customers

loyal customer base amongst the top charterers

annual report 2013

24 Business activities of the rickmers Group

Maritime assets in the Maritime assets business segment, the rickmers Group acts as an asset manager for its own and third-party vessels, and initiates and coordinates vessel projects, arranges financing, acquires, charters out and sells vessels. the Maritime assets segment also comprises the vessel-owning companies of rickmers Group.

Maritime services through its Maritime services business segment, the rickmers Group provides shipmanagement for own and third-party vessels, including technical and operational management, crewing, newbuild supervision and advisory and insurance-related services.

rickmers-linie in the business segment rickmers-linie, the rickmers Group offers global liner services for breakbulk, heavy lift and project cargoes (such as the "round-the-World pearl string service") and individual sailings which complement the liner services. the fleet operated in this segment consists of multi-purpose heavy lift vessels with onboard cranes.

the rickmers Group is an international provider of services for the maritime industry, ves-sel owner and ocean carrier. the rickmers Group’s business is divided in three business segments: Maritime assets, Maritime services and rickmers-linie. as the group parent company, rickmers Holding provides its business segments with interdisciplinary services and serves as a management holding company for the rickmers Group. amongst other things, this means acquiring, holding and selling investments in other shipping companies and related maritime businesses. Moreover, rickmers Holding manages financing for the business segments.

Business activities of the rickmers Group

rickmers Group

25Business activities of the rickmers Group

rickmers shipmanagementHamburg, Germany (100%) rickmers shipmanagement(singapore)singapore (100%)

Global Managementlimassol, Cyprus (100%)

rickmers CrewingHamburg, Germany (100%) rickmers Marine agencyConstanta, romania (100%)

rickmers shipping (shanghai)shanghai, China (94%)

Global Marine insuranceBrokerage serviceslimassol, Cyprus (50%)

rickmers Marine agencyparanaque City / Metro Manila, philippines (25%)

Maritime Assets Maritime Services Rickmers-Linie

rickmers reedereiHamburg, Germany (100%)

rickmers reederei (singapore)singapore (100%)

polaris shipmanagementDouglas, isle of Man (100%)

esse expert shipping serviceHamburg, Germany (100%)

rickmers trust Managementsingapore (100%)

rickmers Maritimesingapore (33.1%)

eVt elbe Vermögens treuhandHamburg, Germany (80%)

Harper petersenHamburg, Germany (50%)

a.r. Maritime investmentssingapore

single-vessel companies

rickmers-linieHamburg, Germany (100%)

rickmers-linie (singapore)singapore (100%)

rickmers-linie Belgiumantwerp, Belgium (100%)

rickmers-linie (Japan)tokyo, Japan (100%)

rickmers-linie (Korea)seoul, south Korea (100%)

rickmers-linie (america)Houston, usa (100%)

MCC Marine Consulting &ContractingHamburg, Germany (100%)

rickmers terminal HoldingHamburg, Germany (100%)

As at 31 December 2013

international presence

the rickmers Group has subsidiaries in eleven countries. in addition, it is represented by more than 50 sales agencies worldwide. the Group’s headquarters are located in Hamburg and singapore.

Business segments and significant participations

TokyoHouston

Singapore

Constanta

LimassolShanghai

Manila

Seoul

HamburgDouglas

Antwerp

annual report 2013

Maritime assets

28

Vessels in asset management

88

total capacity of all container ships in teu (approx.)

295,000

employees in the Maritime assets segment

45

Fleet by owner

Fleet by ship type

Container ships by size

Maritime assets

the Maritime assets business segment provides a broad range of services to manage our investments in ships. services comprise the life cycle of a vessel – from the selection of the right type of vessel and its design, through financing, realisation, optimisation, chartering out and finally sales or scrapping. the existing fleet of owned assets, which comprises about 90 percent of the revenues generated by our Maritime assets business segment, continues to be the major contributor to the rickmers Group’s net result. More than usD 2 billion of future charter revenue has been contracted to ships owned by the rickmers Group or in part-ownership from joint ventures. With a remaining weighted average charter tenor of about four years, this segment of our business produces stable cashflow well into the future.

Maritime assets

594

22

3 8

6

29

18

6

19

3

2

15

limited partnershipsMulti-purpose heavy lift carrier

2,000–< 3,000 teu

5,100 teu

Joint ventureConbulker 1,000–< 2,000 teu

4,000–< 5,000 teu

rickmers Group incl. rickmers Maritime

Container ship ≤ 1,000 teu

3,000–< 4,000 teuother Car carrier

13,100 teu

68

rickmers Group

Maritime assets 29

exploiting market opportunities

the dislocation in the German ship-owning sector has presented a number of att-ractive opportunities. With the prospects of further growth, the rickmers Group and apollo signed a joint venture agreement in september 2013, initially focussing on the second-hand market. the joint venture has an investment volume of up to usD 500 million. these investments initially targeted small container ships in the 1,500 to 3,449 teu range, but the joint venture is beginning to look at opportunities in newbuild tonnage and other ship-related investments in the future.

attractive partner for investors

in addition to exploiting the potential for long-term appreciation in the value of vessels acquired, the rickmers Group also generates income by rendering a range of services that include technical and commercial shipmanagement.

the development of the joint venture with apollo was a significant step for the rickmers Group and, when combined with rickmers Holding’s successful bond issue in 2013, opened the door to funds for new investments alongside apollo in a unique market environment. We are now jointly working to increase the scale of investments in ships. “We are looking forward to working with Bertram Rickmers and his strong man-agement team. The Rickmers Group is a recognised leader in the German shipping community, and it has the scale, operating strength and industry knowledge to take advantage of growth opportunities at this challenging inflection point for the ship-ping industry. We are excited about this partnership as we believe the combination of Rickmers’ outstanding operating capabilities and entrepreneurial spirit and Apollo’s shipping institutional knowledge and capital resources will allow us to drive a strong performance for our respective shareholders and investors.”

skardon Baker, partner in the apollo european principal Finance Fund

the core of the fleet in asset management is formed of 68 container ships.

annual report 2013

30 Maritime assets

of the 88 ships in asset management, 59 ships are owned by the rickmers Group.

in addition to the joint venture with apollo, the rickmers Group is accompanying the construction and chartering out of ten 5,400 teu container ships, ordered by the investment company oaktree Capital Management l. p. seven of the ten newbuilds are scheduled for delivery in 2014.

Current portfolio of 88 vessels

the fleet in the Maritime assets business segment is composed of 68 container ships from 822 teu to vessels with a capacity of 13,100 teu. the fleet also includes 15 multi-purpose carriers for the transport of breakbulk, heavy lift and project cargoes, two conbulkers and three car carriers. of the 88 vessels, 59 are owned by the rickmers Group.

as part of the joint venture with apollo, the first container ship was acquired in December 2013. at the end of the financial year, six other vessels were acquired each with a loading capacity of 3,600 teu (with a high reefer container capacity), which have been fully chartered out for three years. of these, three container ships have already been transferred to the joint venture reflecting the situation at the financial year-end date of four vessels.

rickmers Group

Maritime assets 31

the 13,100 teu ship ruBY riCKMers is chartered to the Maersk line and plies her trade across the world’s oceans under her charter name, MaersK eMDen.

successful partnerships with top charters

the rickmers Group has charters with leading companies in shipping, including Maersk, Mol, Hamburg süd, MsC, ooCl, CMa CGM, pacific international, evergreen and HMM. the largest relationship is with Maersk line (including eight 13,100 teu ships). of the 88 ships in asset management, eleven are chartered to the rickmers-linie, the Group’s heavy lift/multi-purpose business.

By the end of 2013, 78 percent of 2014’s charter days had already been contracted out for rickmers Group vessels and those of its joint venture.

Market presence in shipping – today and tomorrow

shipping is a global business. a solid presence in today’s markets, but especially those of tomorrow, is an essential requirement for any company to have any long-term standing in this industry. alongside its roots in the German shipping market, the rickmers Group positioned itself well in the asian market early on. Back in 2007, the Group tapped the local capital market by floating the rickmers Maritime trust in singapore with 16 ships under management. in addition, rickmers reederei (singapore) was established in 2013 to strengthen the presence of Maritime as-sets in asia. the Maritime assets business segment also comprises rickmers reederei in Hamburg, rickmers trust Management, polaris shipmanagement, esse expert shipping service and eVt elbe Vermögens treuhand. Maritime assets also includes a. r. Maritime investments, newly established as part of the joint venture with apollo and a 50 percent stake in Harper petersen which operates as a shipping broker for the rickmers Group from its offices in Hamburg and shanghai.

annual report 2013

32 Kapitel rickmers Gruppe

33annual report 2013 Kapitel

Maritime services

34

Vessels under technical and operational management

98

technical availability of the fleet

99.2%

employees in the Maritime services segment

3,007

Fleet by owner

Fleet by ship type

Fleet by ship manager

our Maritime services business segment provides technical and operational shipmanagement services for ships owned by the rickmers Group, private equity investors and other leading companies in the shipping industry, including the management of newbuilds from design to delivery and the optimisation of existing vessels’ performance, particularly as it relates to energy efficiency. Capabilities also include crew management, procurement and post-fixture operations which comprise commercial and trading area-related activities required for the performance of a charter party.

Maritime services

Maritime services

56

4

22

16 132

81

2

4652

rickmers shipmanagement in singapore

rickmers shipmanagement in Hamburg

limited partnershipsMulti-purpose heavy lift carrier

Joint ventureConbulker

rickmers Group incl. rickmers Maritime

Container ship

other Car carrier

rickmers Group

Maritime services 35

Maritime services con-tinually develops training programmes with the aim of creating a modern and uniform management culture both at sea and on shore.

reliable partner for internal and external clients Maritime services supports Maritime assets in managing all vessels owned either wholly or partly by the rickmers Group or by limited partnerships. additionally, rickmers shipmanagement also manages 16 third-party vessels from five companies.

Constant increase in efficiency

providing safe, efficient and reliable ship operations remains the overall objective for the activities of Maritime services, which also includes assisting owners and charterers to reduce fuel consumption and related emissions.

annual report 2013

36 Maritime services

the structures in the Maritime services segment are continually aligned with the requirements of changing markets.

rickmers Group


optimising the use of energy on board is a priority not only for ships owned by the rickmers Group, but also for the third parties we manage ships for. these efforts com-prise technical enhancements (e.g. bulbous bow modifications) and the implementa-tion of vessel trim technology. also we have been able to improve vessel intake and increase cargo capacity by introducing new loading and lashing standards. in close cooperation with the classification company DnV Gl, the MaersK elBa (13,100 teu) became the first ship worldwide to receive a new supplementary class notation for optimised, route-specific loading on deck. as a result, all ships in this series that are managed by the rickmers Group not only offer a higher nominal capacity but also contribute to making the stowage planning process more efficient for charterers by providing a much improved flexibility for the stowage of containers. these measures lead to direct process-related savings and higher fuel economy.

High safety and quality standards

Certified according to international standards and regulations, Maritime services provides safe, efficient and reliable operations on board and ashore.

Besides meeting quality, health, safety, security and environmental standards, Maritime services maintains a certified energy management system in line with iso 50001 for its companies in Hamburg and singapore. the commitment to highest operational standards has led to the prestigious award “Gl excellence – 5 stars” by the classification company Germanischer lloyd (today DnV Gl) for the above-average level of services provided by rickmers shipmanagement (singapore) on the basis of its integrated management system. rickmers shipmanagement (singapore) is one of only six companies worldwide to have been awarded the title.

380 Cst bunker price rotterdam usD/tonne2009–2013

Source: Clarksons (January 2014)

2009 20132011

300

100

500

700

annual report 2013

38 Maritime services

Competitive advantage: employees

Maritime services is founded on the excellent qualifications and responsibility of its committed staff – both on board and ashore. particular attention has therefore been given to improving the recruitment process for new colleagues, attracting new talent and on the development and training of management. training programmes that promote a modern and uniform management culture of leadership, passion and responsibility at sea and ashore are being continuously developed.

in the second half of 2013, Maritime services began implementing a strategic partner-ship for the administrative activities of its crew management. this allows the seg-ment to focus on strategically relevant tasks such as the continued development of requirements for staff recruitment, training and promotion. together with an external crewing partner, an internationally aligned, forward-looking system of sea personnel administration has been introduced as a key supporting element to meet the require-ments and aims defined by the rickmers Group – regardless of the nationality of the seafarers. the changes also apply to our crewing agencies in romania and China, as well as to the new office in Manila.

alongside the crewing agencies, Maritime services also comprises the following com-panies: rickmers shipmanagement in singapore and Hamburg, rickmers shipping (shanghai), Global Management and Global Marine insurance Brokerage services (50 percent subsidiary of the rickmers Group) on Cyprus and rickmers Crewing in Hamburg.

rickmers Group


Well-trained and com-mitted employees form the foundations of the Maritime services business segment.

annual report 2013

rickmers-linie

42

Maximum lifting capacity in the fleet

800 t

agencies worldwide

52

Vessels in operation

21

regular liner services

employees in the rickmers-linie segment

198

offices worldwide

16

the ocean transportation of breakbulk, heavy lift and project cargoes is the business of the rickmers-linie segment. rickmers-linie has established a reputation for highly reliable global service, and a renowned brand with excellent customer relationships. in 2013, a westbound “round-the-World service” was introduced, sailing from asia on to south america and north america and back to asia, which complements the eastbound service that has been a main feature of rickmers-linie’s global coverage. the network of routes is complemented by other liner services that connect europe with the Middle east and asia with america.

rickmers-linie

rickmers-linie

• Round-the-World Pearl String Service• Europe-Middle East/India Pendulum

service• North Coast South America Service• Westbound Round-the-World Service

rickmers Group

rickmers-linie 43

Challenging markets

rickmers-linie’s performance for 2013 reflects the ongoing negative impact of the protracted downwards cycle in shipping in general and in the heavy lift/multi-purpose sector in particular, producing a loss of € 34.1 million for the year. Hopes for improved market conditions coming out of 2012, which also produced losses, have proven elusive. rates deteriorated throughout 2013 due to significant over-supply and soft market demand in key trade lanes resulting in intense price competition within the sector, as well as from the bulk and container sectors that are filling their own uti-lisation gaps. the turnaround we had hoped to see begin in 2013 did not occur and 2014 looks like another tough year for this sector.

rickmers-linie transported linde aG cold boxes from Bremen to Jubail in saudi arabia.

annual report 2013

44 rickmers-linie

rickmers-linie transports project and heavy lift loads such as yachts and turbine components using its multi-purpose heavy lift carriers.

Fleet composition

rickmers-linie operates a fleet of 21 multi-purpose freighters and charters other vessels to meet short-term demand. the “round-the-World pearl string service” is operated by ten identical ships with a loading capacity of 30,000 DWt. each ship has four cranes, the two largest of which (each 320 tonnes capacity) can be combined to lift cargo units of up to 640 tonnes on board, facilitating reliable and safe transport of goods such as gas tanks, wind turbines, locomotives, sailing and motor yachts. Four chartered vessels are deployed on the service between europe and the Middle east/india – two of which feature the highest crane capacity currently available in the fleet of the rickmers Group, each capable of lifting up to 800 tonnes. two new vessels equipped with even more efficient cranes (total lifting capacity of 900 tonnes) and improved energy efficiency will be added to the rickmers-linie fleet at the end of 2014 and the beginning of 2015.

rickmers Group

45rickmers-linie

the riCosYs software solution enables three- dimensional simula-tions for optimised load planning and cargo management.

Close to clients

rickmers-linie operates 16 offices around the world, including those in Hamburg, antwerp, Houston, shanghai, tokyo and seoul. With the growing economic strength of regions in asia and south america, rickmers-linie expanded its established "round-the-World pearl string service" service in 2013 to include a westbound passage that connects the growth markets of asia with south america, and south america with north america. in addition, rickmers-linie has extended its sales network and estab-lished a subsidiary in singapore - rickmers-linie (singapore) pte. ltd. its international network of offices also consists of 50 sales agencies that represent the company around the globe.

Certification and processes lay the foundations

rickmers-linie’s integrated management system is certified by Germanischer lloyd in line with iso 9001:2008, iso 14001:2009 and oHsas 18001:2007.

to achieve the best-possible loading planning and cargo management, rickmers-linie deploys riCosYs, its in-house-developed software solution. With the help of 3-D simulations, loading and discharge operations, and the stowing and securing of cargo units, can be safely planned.

annual report 2013

Information about the reportingThe presentation of the Group management report has changed in comparison with the previous year due to the first-time application of German Accounting Standard 20 (“Deutscher Rechnungslegungs Standard 20”, hereinafter DRS 20). The application of DRS 20 does not have any im-pact on the presentation of the financial position, finan-cial performance and cashflows of the Rickmers Group. Furthermore, in 2013 a conversion was made to the IFRS (International Financial Reporting Standards) for the con-solidated financial statement.

Annual Report 2013

48 The Rickmers Group 52 Economic Report 60 Employees 62 Events after Reporting Date 62 Risk, Opportunity and Forecast Report

Group management report

Rickmers Group

1 The Rickmers Group

1.1 The Rickmers Group business model

The Rickmers Group is an established international provid-er of services for the shipping industry, vessel owner and ocean carrier with its head office in Hamburg. In the fi-nancial year 2013, the Rickmers Group had 3,378 employees (2012: 3,490) on average. The Rickmers Group provides a broad range of services in the shipping industry. Besides Rickmers Holding GmbH & Cie. KG, the Rickmers Group comprises 113 Group companies. Rickmers Holding GmbH & Cie. KG and its affiliated companies are represented by over 20 branches in eleven countries (Germany, Belgium, Isle of Man, Cyprus, Romania, Philippines, China, South Korea, Japan, Singapore and United States of America) and by more than 50 sales agencies.

The business activities of the Rickmers Group are divided into three segments: Maritime Assets, Maritime Services and Rickmers-Linie.

Through its Maritime Assets business segment, the Rickmers Group acts as asset manager for its own and for third-party vessels, initiates and coordinates vessel projects, arranges financing and acquires, charters out and sells vessels. Maritime Assets also comprises the vessel owning compa-nies of the Rickmers Group.

In the Maritime Services business segment, the Rickmers Group provides shipmanagement services for Rickmers Group’s own and for third-party vessels, including tech-nical and operational management, crewing, newbuild supervision, and advisory and insurance-related services.

In its Rickmers-Linie business segment, the Rickmers Group offers global breakbulk, heavy lift and project cargo liner services (such as the “Round-the-World Pearl String Service”) and individual sailings complementing the liner services. The fleet operating in this segment consists of multi-purpose heavy lift vessels with onboard cranes.

As the Group’s parent company, Rickmers Holding GmbH & Cie. KG provides its business segments with interdis-ciplinary services and serves as a management holding company for the entire Rickmers Group (Corporate Center). Amongst other things, this means acquiring, holding and selling investments in other shipping companies and relat-ed maritime businesses. Moreover, Rickmers Holding GmbH & Cie. KG manages financing for the business segments.

1.2 Organisation and management structure

Rickmers Group is managed by a four-person Executive Board – the Chairman, the CEO, the Deputy CEO & CFO, and the Deputy CFO.

Responsibility for the three business segments Maritime Assets, Maritime Services and Rickmers-Linie lies with the Global Heads of the respective business segments. Below Rickmers Holding GmbH & Cie. KG, the main companies in the three segments are Rickmers Reederei GmbH & Cie. KG (Maritime Assets), Rickmers Shipmanagement GmbH & Cie. KG (Maritime Services) and Rickmers-Linie GmbH & Cie. KG (Rickmers-Linie).

The Global Heads of the three business segments, the Chief Treasury & Risk Officer and the Chief Operating Officer of Rickmers-Linie represent the Extended Board Committee of the Rickmers Group. In cooperation with the Advisory Board, they support the Rickmers Group’s Executive Board.

Group management report

48 Group management report

Annual Report 2013

due to economies of scale not only make it far more cost-efficient, it is also more environmentally friendly, with much lower greenhouse gas emissions measured per tonne.

2. Ongoing tension in the shipping markets will continue to add pressure to consolidate in the industry.

3. To meet the challenges of a demanding competitive environment and exploit the opportunities it presents, the access to attractive sources of financing, for exam-ple in the capital market and a high level of shipping expertise are crucial.

Organisation of the Rickmers Group

Advisory Board

Ronald D. WiddowsCEO

Rickmers ReedereiHamburg, Germany(100%)

Polaris ShipmanagementDouglas, Isle of Man (100%)

Rickmers Trust Management, Singapore (100%)

Rickmers MaritimeSingapore (33.1%)

Rickmers Reederei (Singapore), Singapore (100%)

ESSE Expert Shipping ServiceHamburg, Germany (100%)

EVT Elbe Vermögens TreuhandHamburg, Germany (80%)

Rickmers ShipmanagementHamburg, Germany (100%)

Global ManagementLimassol, Cyprus (100%)

Global Marine InsuranceBrokerage ServicesLimassol, Cyprus (50%)

Rickmers Marine AgencyConstanta, Romania (100%)

Rickmers Marine AgencyParanaque City / Metro Manila, Philippines (25%)

Rickmers Shipmanagement(Singapore), Singapore (100%)

Rickmers CrewingHamburg, Germany (100%)

Rickmers Shipping (Shanghai)Shanghai, China (94%)

Rickmers-LinieHamburg, Germany(100%)

Rickmers-Linie (Singapore) Singapore (100%)

Rickmers (Korea)Seoul, South Korea (100%)

MCC Marine Consulting & Contracting, Hamburg, Germany (100%)

Rickmers Terminal Hold-ing Hamburg, Germany (100%)

Rickmers-Linie (America)Houston, USA (100%)

Rickmers-Linie BelgiumAntwerp, Belgium (100%)

Rickmers (Japan)Tokyo, Japan (100%)

Dr Ignace Van MeenenDeputy CEO und CFO

ChairmanBertram R. C. Rickmers

Board of Executive Directors

BUSINESS SEGMENTS AND SIGNIFICANT PARTICIPATIONS

Bertram R. C. Rickmers Claus-Günther Budelmann Jost Hellmann Flemming R. Jacobs

1.3 Strategy and aims

The Rickmers Group continually adapts its strategy to the conditions of the shipping market. Compared to the previ-ous year, there are no significant changes to the analysed and communicated potential fields in which the company can achieve sustainable growth.

The strategy is based on the following assumptions:

1. Around 90 percent of goods traded globally are trans-ported by sea. Consequently, clients stand to benefit from reliability, safety, quality and low costs. Compared to other transport modes, shipping’s significant advantages

RICKMERS HOLDING HEAD OFFICES: HAMBURG/GERMANy, SINGAPORE

Bertram R. C. Rickmers Chairman

Prof. Dr Mark-Ken ErdmannDeputy CFO

Extended Board Committee

Holger StrackGlobal Head Maritime Assets

Björn SprotteGlobal Head Maritime Services

Rüdiger GerhardtGlobal Head Rickmers-Linie

Frank BünteChief Treasury & Risk Officer and Head of Capital Markets

Ulrich Ulrichs Chief Operating Officer Rickmers-Linie

Corporate Center

M&A TaxControlling & Accounting Legal AffairsHuman Resources Organisation Treasury & RiskCapital Markets ITCorporate Communications Corporate Insurance

MARITIME ASSETS MARITIME SERVICES RICKMERS-LINIE

A.R. Maritime Investments, Singapore

Harper PetersenHamburg, Germany (50%)

Single-vessel companies

49Group management report

Rickmers Group

4. In the future, the most significant impetus of the growth in international trade and the ensuing trade flows will continue to come from Asia.

5. Capital investment in heavy industry and the construc-tion of plants for power generation, the oil, gas and chemical industries, infrastructure and mining will grow worldwide.

6. In the medium to long term, energy efficiency and resource-light shipping operations will grow in import-ance. A fleet of low-cost vessels will be successful, even in a market that remains characterised by overcapacity.

7. Besides the issues of energy and ecological efficiency, qualities such as schedule reliability, cost-efficiency and safe transport will play an ever-greater role in future capital goods logistics.

8. The recruiting and training of staff ashore as well as at sea will become more crucial determinants of competi-tiveness in the shipping industry.

Rickmers has derived its strategy from these assumptions, a strategy that aims to lead the company towards sustain-able and profitable growth:

1. Meeting capital market requirements and tapping additional sources of funds

In order to exploit market opportunities and to be able to actively shape the anticipated consolidation, sound cor-porate financing and access to the capital markets are indispensable. The Rickmers Group is a soundly financed family-owned company. The ownership structure with its about 180-year family tradition in the shipping industry and experienced management team guarantee sustainable management.

Financial structures and reporting systems are aligned to meet the demands of the international capital market. With the issue of a corporate bond in 2013, the first step into the capital market was successfully made, which in future should be expanded on the international stage. In the

reporting period 2013, a further step took place with the conversion to international financial reporting standards (IFRS). In this context, not only contents, concepts, systems as well as processes were adjusted, but also measures for staff training were adopted. The qualification of the em-ployees constitutes a basic factor in achieving the strategic aims.

2. Strengthening organic growth in the business segments

The three business segments, Maritime Assets, Maritime Services and Rickmers-Linie cover a broad range of services in the shipping supply chain. In particular in the busi-ness segment Maritime Assets organic growth opportuni-ties arise through an enlargement of the fleet, which also lead to increased business activities within the segment Maritime Services. The aim of the Rickmers Group is to set standards in its markets and to offer clients premium services at very good price-performance ratios. The broad range of service and client portfolio enables the Rickmers Group to have an excellent understanding of markets and clients.

3. Expand business in AsiaThe growth potential for shipping companies in the Asian region is highly promising. Thereby, it is essential, that a geographic activity of the Rickmers Group with Rickmers Asia Pte. Ltd. is concentrated in Singapore. After the foun-dation of a joint venture with funds affiliated with Apollo Global Management, LLC in Singapore it is planned to fur-ther expand the fleet in Asia in the long term.

4. Creating added value as a service providerThe Rickmers Group is an ideal partner for institutional investors looking to exploit opportunities in the ship-ping market and to control risks. In conjunction with the Maritime Services business segment, Maritime Assets can coordinate shipyard selection, newbuild design and supervision and the chartering out of ships to internation-ally established clients on behalf of investors. It can also provide controlling, reporting and accounting services and compile exit scenarios. The Rickmers Group sees consider-able potential in this service business. The Rickmers Group


Annual Report 2013

also offers to manage ships on behalf of financing part-ners whose owners are no longer able to cover ongoing financing costs. As service providers to these financers, the Rickmers Group can significantly improve the profitability of the ships by investing in measures such as energy efficiency that have a relatively short payback period and by optimis-ing operational processes.

5. Exploiting energy-efficiency management to competitive advantage

Through successful energy-efficiency management and therefore overall low ship-operating costs, an attractive charter business can still be achieved in a market char-acterised by overcapacity. With fuel costs now accounting for more than three-quarters of a ship’s operating costs, charter clients much prefer fuel-saving vessels. In 2013, the Maritime Technology department was established within Maritime Services in order to implement a comprehensive energy-efficiency program for the fleet.

6. Exploiting the low cost of newbuildsThe prices of newbuilds have fallen 40 percent since 2008 and are on a comparable low level. Moreover, vessels com-missioned today will consume up to 30 percent less fuel than ships being delivered now. Therefore, investments in newbuilds are still attractive. However, this is dependent on a variety of factors at the time of the decision such as the intensive assessment of the conditions of the ship-yards, the energy efficiency of the vessels, the financial environment and the anticipated developments in the relevant markets.

7. Investing in peopleThe qualification of the employees is an essential factor for the Rickmers Group to realise the aims. In inter active courses captains and officers as well as employees ashore are prepared for their management tasks. For onboard teams, Maritime Services provides special courses focus-ing, amongst other things, on energy management and on the provision of safe and appealing working and living conditions on board.

1.4 Management system

In its management process, the Rickmers Group applies both financial and non-financial performance indicators. The most significant financial performance indicators in-clude key operating data from the income statement:

•Revenue•EBITDA•Consolidated net income/loss

Significant non-financial performance indicators relate to the operational side of shipping and to the organisation of the Rickmers Group:

•Number of vessels in management•Number of employees

Regular management reporting is used to control the seg-ments of the Rickmers Group, which provides, beyond con-siderable performance indicators, comprehensive financial and operational information. These control instruments are regularly assessed for their adequacy and adjusted where necessary.

1.5 Research and development

As a company providing services the Rickmers Group does not run a Research and Development department compar-able to producing companies. Therefore, this report sec-tion is omitted. Activities regarding the development of, for instance, energy-efficiency measures in the depart-ment of Maritime Technology are further described in the opportunity report in section 5.2.


Rickmers Group

2 Economic Report

2.1 Economic and industry environment

2.1.1 Overall economic situation

According to the International Monetary Fund (IMF) the global economy grew by 3.0 percent in 2013 and thus is slightly below the previous year’s value (2012: 3.1 percent). Within this, the developed economies achieved growth of just 1.3 percent (2012: 1.4 percent) while the developing and emerging economies saw growth of 4.7 percent (2012: 4.9 percent). An upward trend was seen particularly in the second half of 2013, driven, amongst other factors, by rising demand from the developed economies; this also had a positive impact on the exports activities from developing countries. In contrast, internal demand in the developing countries remained subdued. Despite the growth achieved in 2013, the developing and emerging economies are facing various challenges, such as the need for structural adjustments following years of laissez faire policies or currency devaluations. The IMF reports growth in world trade of 2.7 percent for 2013 (2012: 2.7 percent). In parallel to the global economy growth there was evi-dence of a split development in the global trade: While the developing and emerging economies saw particularly strong growth of 5.3 percent in imports, the industrialised nations imported a mere 1.4 percent more than in the previous year.

Sources: IWF and Clarksons (as at January 2014); *forecast.

Global economy Global trade Container traffic

Overall economic situation, changes over previous year in percent

0-3-6-9

-12

369

1215

2015*2011 2012 2014*2013 2007 2008 20102006 20092005

2.1.2 Shipping industry-related framework conditions

Clarksons reported 5.0 percent growth in worldwide trade via container shipping in 2013 and thus a clear improve-ment on the previous year (2012: 3.1 percent). Here in particular, a recovery was seen in volumes on the main container trade routes, which rose by 3.9 percent over-all in 2013 (2012: 0.8 percent). This development was pri-marily driven by the rise in freight volumes on the Far East–Europe route, which saw growth of 4.0 percent (2012: -4.9 percent). Moreover, trade from the Far East-North America grew during the course of 2013 to total 4.0 percent. On the North–South routes, growth was 4.3 percent in 2013. Intraregional container trade continued to benefit from robust intra-Asian traffic, rising by 6.6 percent according to Clarksons. Nevertheless, in 2013 growth in global trade volume via container ships remained significantly below the approximately 7.4 percent average growth rate of the last decade.

According to Clarksons the container fleet grew by 4.8 percent in 2013 and thus saw approximately the same rate of growth as in the container-trade volume of some 5.0 percent. However, the persistence of comparatively low freight rates on the global routes indicates an over-all structural oversupply of ships. Overcapacity therefore persists on the main Asia–Europe trade routes as well as on the transpacific routes. However, corresponding coun-termeasures, such as major postponements in the deliv-ery of newbuilds, restrained further fleet growth. Analysts estimate that around 25 percent of tonnage scheduled for


Annual Report 2013

delivery in 2013 will be delivered in later years. In addi-tion to this, fleet growth was reined in by a high num-ber of scrappings: at around 461,000 TEU, freight capacity scrapped in 2013 decimated the previous record of some 381,000 TEU in 2008. Despite this figure, delivered new freight capacity outstripped this by a factor of three. A fur-ther effect influencing the relationship between available freight tonnage and freight demand in 2013 was the rela-tively high number of laid-up container ships: 5.3 percent of the existing fleet was unemployed in March 2013, repre-senting 280 ships with a capacity of 866,000 TEU in total. As already seen in previous years, a further reduction in overcapacity was achieved through Super Slow Steaming, which this reduces ships’ speed in order to save fuel and results in lower freight capacity at the same time. Analysts estimate the reduction of transport capacity through Super Slow Steaming at 15–20 percent.

Growth rates in global container traffic 2013 in percent

Source: Clarksons (as at December 2013).

2.0

+7.0

+4.0

+7.0

+2.8 +5.2

+1.0

+7.2

+5.0

+1.0

North America

Latin America

Africa

Europe

Middle East

Far EastIntra-Asia

Australasia

India

0

15

20

5

10

25

+9.2% +8.0% +6.0% +5.7% +6.6% +9.1%+5.7%

2009 2011 20122010 2013* 2015*2014*

Container fleet growth

in TEU million in percent

Source: Alphaliner (as at January 2014); *forecast.

< 3,000 TEU 3,000–5,099 TEU ≥ 5,100 TEU

Deliveries of container ships in thousand TEU

Source: Alphaliner (as at January 2014); *forecast.

2011 2012 2013 2014* 2015* 2016*0

2,000

500

1,000

1,500


Rickmers Group

According to analyses by Howe Robinson, container ship charter rates have been in a stagnation phase since 2011. However, charter rates did not develop evenly across all size classes. On one hand, capacity utilisation in ship classes under 3,000 TEU was reported above the previ-ous year’s level and with a corresponding development in freight rates. On the other hand, according to the Ver-einigung Hamburger Schiffsmakler (Association of Hamburg Shipbrokers), the Panamax-class saw a decline in char-ter rates of 29 percent versus the previous year. The main reasons of this slide in rates was persistent overcapacity and the so-called “cascade effect”: The latter here de-scribes the displacement of Panamax-class vessels from their usual areas of operation by newbuilds over 9,000 TEU, influenced by the planned opening of the expanded Panama Canal in 2016. Panamax-ships are now partly be-ing employed on alternative, intraregional routes as well as on numerous North–South routes.

Newbuild prices for container ships rose slightly and were on average 3 – 5 percent above levels at the beginning of the year. An increase in demand for container ships over 9,000 TEU but also for tankers, offshore supply ships and especially bulk carriers is keeping some shipyards busy through to 2016. Established shipyards building Feeder-class vessels are currently only accepting commissions from 2017 onwards. The ratio of orders for container ships to the existing container fleet is 21.7 percent. By comparison, new orders for ships over 7,500 TEU represent 51.4 percent of the existing fleet. According to Alphaliner, as at 1 December 2013 the aggregated worldwide orderbook totalled 495 ships with a combined 3.74 million TEU capacity.

Source: Alphaliner (as at January 2014).

3

5

30

16

35

3

53

Order book structure for container fleet in percent

13,000 TEU

Categories in the order book

10,000–13,000 TEU

7,500–9,999 TEU

5,100–7,499 TEU

4,000–5,099 TEU

3,000–3,999 TEU

2,000–2,999 TEU

Prices for tonnage built at the end of the 1990s rose by up to 20 percent in the reporting period, in particular for ships with capacities between 1,700 and 2,500 TEU. Interest in this sector rose in the second half of 2013; there were often several bidders for a single ship and the oversupply of buyers was an additional driver of higher prices. Private equity investors and Greek buyers showed a strong pres-ence in the past year; their purchases of older vessels under 4,000 TEU at prices just above scrap value will probably prove profitable on a later resale.

The breakbulk, heavy lift and project cargo market relevant to the Rickmers-Linie business is defined as a sub-segment of the so-called Dry Cargo market. In view of the highly individual cargo items and the fact that most companies operating in this market are not stock-exchange listed, it is hard to collate market data for this segment. In addition, typical cargoes in this market are also carried by vessels operating in the bulk and container market, which means that there is also competition with players from outside the actual market segment. This dynamic coupled with the pronounced oversupply of ships – the global fleet of multi-purpose carriers with heavy lift cranes has more than doubled between 2008 and 2013 – has led to a significant decline in freight rates and related losses for many compa-nies in this market.

According to estimates by the Procurement Executive Group (PEG) for project shipping, global investment rose by 8.4 percent, which represents a key indicator for the breakbulk, heavy lift and project cargo market, and at USD 2,254 billion was well above the previous year’s level of USD 2,080 billion. Based on the PEG figures, Drewry has reported a volume of around 280 million freight tonnes for 2013 (2012: 260 million tonnes). Despite a positive trend in the development of global demand, freight rates worsened in 2013, especially on Rickmers-Linie trade routes, and remained well below their pre-crisis level of 2008.

< 1.999 TEU


Annual Report 2013

2.2 Business performance

2.2.1 Overall statement from the management

The Rickmers Group reported an overall decline in revenue of 11 percent for the reporting period. Particularly in the business segments Maritime Services and Rickmers-Linie, business development was significantly weaker than in the previous year. The Group’s operating result (EBITDA) for 2013 totalled € 191.8 million (2012: € 274.6 million). Posi-tive cashflow from operating activities was reported at € 194.5 million (2012: € 231.4 million).

At the time of preparation of the Annual Report, the man-agement assesses the business situation of the Rickmers Group based on contracted charter volumes of approxi-mately USD 2.0 billion as stable. Additionally, the Rickmers Group’s financial situation will be strengthened by the refinancing process of mid-term liabilities started in 2013.

2.2.2 Business performance of the business segments

Maritime AssetsIn the Maritime Assets business segment, 88 ships were under commercial management as at the financial year-end date.

In the reporting period, this business segment concen-trated on selected acquisitions of vessels in order to exploit market opportunities offered by the consolidation process in the sector. For instance, this led to the acquisition of five 2,200 TEU ships.

As part of the joint venture with funds affiliated with Apollo Global Management, LLC, four container ships were acquired in December 2013.

Furthermore, on behalf of the KG-funds Maritime Assets supervised the sale of 27 KG-fund ships in the reporting period.

Following the complete cancellation of the newbuilds or-dered in 2012 from Wuhu Xinlian Shipbuilding Co., Ltd. due to construction delays, the advance payments were repaid to the Rickmers Group in the reporting period.

The subgroup Rickmers Maritime, Singapore, undertook a capital increase of € 62.4 million in the first half of 2013. The Rickmers Group took a 33.1 percent pro rata participa-tion in this transaction. The capital increase was success-fully concluded on 27 May 2013. Besides this, in November a Medium Term Note (MTN) programme was announced with the objective of raising up to SGD 300 million. The overall volume may be issued in several staggered tranches as well as in differing currencies.

Maritime ServicesAt the financial year-end date the Maritime Services business segment had a total of 98 ships under management. Com-pared to the previous year the number of ships under man-agement declined by eight (29 disposals and six acquisitions in Hamburg, 15 acquisitions in Singapore). The operational availability of these ships in 2013 was 99 percent (2012: 98 percent) on average and thus 362 days.

Maritime Services has taken responsibility as operative partner for the supervision advisory of ten newbuilds, which are financed by the investment company Oaktree Capital Management L.P. and will be delivered in 2014 and 2015.

Within the framework of a reorganisation, the Maritime Services business segment entered into a strategic partner-ship with an external provider of crewing services in order to raise further its competitiveness in terms of quality and costs. In connection with this, an organisational restruc-turing in the Hamburg and Cyprus offices was initiated.

Since 10 January 2013, Mr Björn Sprotte has held the post of Global Head of the Maritime Services segment. He suc-ceeds Mr Jens Lassen, who chose to leave the company at the same time.

To meet charterers’ demands for bunker-efficient ships, the Maritime Technology department was established within Maritime Services in order to optimise the energy efficiency of the fleet.


Rickmers Group

Rickmers-LinieFreight performance for breakbulk, heavy lift and project cargo totalled 2.1 million freight tonnes in the financial year 2013. For this Rickmers Linie has concluded long-term char-ters for five vessels with a further 16 vessels chartered for the short to medium term. If required, additional vessels can be deployed to provide flexible expansion of transport volumes.

Since the first quarter of 2013, Rickmers-Linie now offers a new westbound liner service, currently with three multi-purpose heavy lift carriers, which links Asia with North and South America (westbound “Round-the-World Service”). Additionally, two further ships were chartered to expand the “Europe–India Service” and to strengthen the schedule reliability of the eastbound “Round-the-World Pearl String Service”. In return, three ships whose charters expired in the reporting period were returned to their owners.

Sales activities were intensified with an expansion in or-ganisational structure as well as in staffing, particularly in Asia as well as in North and South America.

In November 2013, Rickmers-Linie and Maersk Line Limited jointly agreed to terminate their two ship joint venture af-ter both order volume and turnover fell short of expecta-tions. The operational cooperation will be terminated as of March 2014.

2.2.3 Business performance of the Corporate Center

In the first half of 2013, Rickmers Holding GmbH & Cie. KG successfully placed a corporate bond with an issue volume of € 175 million, an annual interest rate of 8.875 percent and a term running until 11 June 2018. The issue was placed on the Frankfurt Stock Exchange in the Prime Standard seg-ment. The Rickmers Holding GmbH & Cie. KG was rated at “BB” by the Verband der Vereine Creditreform e.V. In November, the company increased the corporate bond is-sue by € 50 million to € 225 million in a private placement with institutional investors. This increase was subject to the same conditions as the initial placement.

With the perspective of further growth, the Rickmers Group and funds affiliated with Apollo Global Management, LLC signed a joint venture agreement with an initial focus on second-hand ships in September 2013. The joint venture has an investment volume of up to USD 500 million.

The regional headquarters Rickmers Asia Pte. Ltd., Singa-pore was established in the second half of 2013 to ensure the company has an optimal strategic position in the in-creasingly important Asian shipping market.

On 5 December 2013, Prof. Dr Mark-Ken Erdmann, Deputy CFO, was assigned as a member of the Executive Board of the Rickmers Group.

2.3 Income, financial and asset situation

2.3.1 Income situation

The revenue development of the Rickmers Group in 2013 was influenced by persistent market tension as well as the reduction in fleet size: as at 31 December 2013 it comprised 102 ships (2012: 109). The disposal of 27 KG-fund vessels was partly compensated by fleet growth throught the joint venture with funds affiliated with Apollo Global Manage-ment, LLC as well as by taking additional third-party owned ships under management. At the financial year-end date the fleet was composed of 59 own ships, 22 KG-fund ships, four ships in the joint venture with funds affiliated with Apollo Global Investment, LLC and 17 ships owned by par-ties outside the Rickmers Group.

In the financial year 2013, the Rickmers Group generated revenue of € 578.6 million (2012: € 648.0 million). This revenue development is mainly attributable to persis-tently low charter rates, the structured reduction of the fleet under management (disposal of KG-fund ships), losses in the Rickmers-Linie logistics business due to the continued difficult market situation and exchange-rate developments.

In the Maritime Assets segment, revenue declined by € 16.6 million to € 374.2 million (2012: € 390.8 million). The acquisition of additional ships planned in the previous year could not be carried out to the extent desired, meaning that the reduction in services revenue resulting from the downsizing of the KG-fund fleet was mainly responsible for the decline in overall revenue. Furthermore, new charter contracts could only be agreed at the current low market price level. Moreover, unfavourable exchange rate develop-ments led to a decline in revenue reported in euros.


Annual Report 2013

The sharpest falls in revenue were reported by the Maritime Services business segment, with a decline of € 36.0 million or 24 percent; in the reporting period, revenue in this seg-ment was € 115.9 million (2012: € 151.9 million). Similar to the development described in the Maritime Assets business segment, this decline is attributable to the structured re-duction in the KG-fund fleet, which was under manage-ment by the Maritime Services segment. As at the financial year-end date, the disposal of this fleet could only partly be compensated by the acquisition of new management contracts for third-party ships and thus closely corre-sponded to the forecast from the previous year.

In the Rickmers-Linie segment, continued downward pres-sure on ocean freight rates, as well as lower utilization produced by difficult market conditions led to a deterio-ration in revenues. In view of the ongoing tough market conditions, the expected recovery forecast in 2013 did not take place. Aggravated by unfavourable exchange-rate developments, sales revenue fell by € 22.3 million. At the financial year-end date, segment revenue was € 190.4 mil-lion (2012: € 212.7 million).

2013 2012

Revenue generated by third parties by segment in € million

Maritime Assets Maritime Services Rickmers-Linie0

100

200

300

400

500

In 2013, the Rickmers Group achieved a positive con-solidated result of € 1.5 million (2012: € 10.7 million). The decline in the result is to be attributed to the distinct decline in sales revenues, which could not be completely compensated by corresponding cost savings. The Mari-time Assets segment reported a positive segment result of € 59.7 million, which is € 25.8 million above the previous year’s level (2012: € 33.9 million). In the Maritime Ser-vices segment the result of € 4.1 million was only slightly below the previous year’s figure of € 5.0 million, while Rickmers-Linie reported a result of € -34.1 million (2012: € -18.7 million) in the financial year 2013.

In line with the negative development of sales, the Rickmers Group’s EBITDA in the financial year 2013 declined to € 191.8 million and thus laid 30 percent below the previous year’s level (2012: € 274.6 million). At the segment level, Maritime Assets achieved EBITDA of € 240.5 million and thus was 19 percent below the previous year’s level (2012: € 298.1 million). At Maritime Services EBITDA declined by € 1.7 million to € 3.3 mil-lion (2012: € 5.0 million), while at Rickmers-Linie EBITDA amounted to € -33.5 million (2012: € -17.9 million).

Cost of materials were cut by about 6 percent, in par-ticular by reducing the size of the fleet in the Maritime Assets and Maritime Services business segments. In the Rickmers-Linie segment a lower number of voyages com-pared to the previous year had a positive effect on bunker expenses. As forecast in the previous year, cost of materi-als were additionally reduced by energy-efficiency meas-ures such as Super Slow Steaming. In this respect, it was possible to reduce personnel expenses in the reporting period; these amounted to € 88.5 million in 2013 (2012: € 95.5 million).

The slight increase in amortisation, depreciation and im-pairment losses for intangible assets and property, plant and equipment to € 122.6 million (2012: € 115.3 million) results primarily from impairments on a total of eight vessels. Other operating expenses ran to € 56.2 million in 2013 and are thus € 4.2 million higher than in the previ-ous year (2012: € 52.0 million).

Other operating income and the financial result are marked by a one-time effect from the restructuring of the derivatives portfolio in 2012. This restructuring had no material effect on earnings at the Group level, but changed the classification of other operating income and financial result. The reason for this was that the positive effect on earnings from liquidation of currency deriva-tives amounting to € 30.5 million was reported in other operating income, while the contrary negative effect on earnings arising from interest derivatives (€ 31.0 million) had to be reported under financial result. Consequently, other operating income declined in the reporting period to € 34.0 million (2012: € 59.3 million). At the same time, the financial result 2013 improved to € -69.5 million (2012: € -142.3 million).


Rickmers Group

Apart from the elimination of burdensome special effects in 2012, the increased market values of interest deriva-tives (€ 32.5 million) due to a positive development of the interest curve contributed to a significant improvement of the financial result (total € 72.8 million), compared to the previous year. Furthermore, within the financial result a change in presentation due to IFRS led to a shift of the expenses for interest rate derivatives from the net interest (2012: € -12 million) into the other financial result (2013: € -9 million).

2.3.2 Financial situation

Principles and aims of the financial managementThe financial management at the Rickmers Group is con-trolled by the central Group Treasury & Risk department and aims to secure the financial stability. Furthermore, the central financial management optimises capital struc-ture and finance costs, plus the control of both market price risks and counterparty risks. Financial management is organisationally divided into Front, Middle and Back Office. It works separately from the functions accounting, financial controlling and reporting, and within the frame of national law, internal principles and rules.

The most important goal for the Rickmers Group is to maintain a reasonable level of minimum liquidity. The op-timisation of short- and medium-term liquidity outflow is essential for efficient financial management. The most significant Group companies are pooled in a central cash management system.

Capital structureThe capital structure of the Rickmers Group with its sub-sidiaries is designed with a needs orientation and is based on fundamental considerations of cost and risk-optimised financial and capital resources.

The Rickmers Group covers any financing needs which ex-ceed the cash inflows from business operations by rais-ing short, medium and long-term financial debt. The aim is to achieve diversification among the capital investors, optimise financing terms and ensure a balanced maturity profile by means of an appropriate financing mix.

In 2013, the Rickmers Group successfully entered the capi-tal market with the issue of a corporate bond to a total volume of € 225 million. This step was essential in order to become less dependent on traditional bank financing and to take effective advantage of growth possibilities. The Rickmers Group consequently intends to use the net cash inflows from the bond issue to finance investment in growth sectors and to replace existing bank liabilities.

The subsidiary Rickmers Maritime, Singapore, which is listed on the Singapore Stock Exchange, was also able to further tap the capital market as a source of financing in the reporting period with an increase of € 62.4 million in equity.

As at 31 December 2013, the Rickmers Group’s equity amounted to € 569.4 million (2012: € 553.7 million). With an equity ratio of 22.6 percent (2012: 20.7 percent), the Rickmers Group is soundly financed.

The Rickmers Group’s liabilities declined in total to € 1,954.9 million (2012: € 2,121.3 million). Long-term liabili-ties fell to € 1,384.3 million (2012: € 1,798.2 million). This fall was characterised, amongst other things, by the favour-able development of the market values of derivative finan-cial instruments, which led to long-term liabilities under derivative financial instruments declining by € 41.6 mil-lion to € 76.9 million (2012: € 118.5 million). Furthermore, long-term bank liabilities decreased by € 575.3 million to € 1,030.7 million (2012: € 1,606.0 million), due to the re-payment of loans and the reclassification into short-term liabilities. This contrasts with the placement of the first corporate bond, which increased long-term debt by a total of € 217.0 million. The Rickmers Group’s current liabilities increased to € 570.6 million (2012: € 323.1 million). The in-crease is explained due to a reclassification of long-term liabilities into the scope of short-term liabilities. Thus, the short-term liabilities to credit institutions increased by € 246.9 million to € 461.8 million (2012: € 214.9 million). As a countervailing effect loans to credit institutions were repaid in the amount of € 72.3 million.


Annual Report 2013

InvestmentsThe Rickmers Group’s investment volume totalled € 58.2 million in 2013.

As in the previous year, no investment was made in newbuilds. Instead, a total of ten second-hand container vessels were acquired in the ship classes 2,000 TEU (1x), 2,200 TEU (5x) and – in partnership with funds affiliat-ed with Apollo Global Management, LLC – in the classes 2,700 TEU (1x) and 3,500 TEU (3x), with a total investment volume of € 51.3 million (2012: € 8.7 million). Moreover, investment was made in optimising the IT, reporting and controlling systems, as well as the processes and structures.

LiquidityCash and cash equivalents amounted to € 144.8 million (2012: € 72.1 million) as at 31 December 2013. The positive development of cash and cash equivalents is primarily due to the fact that the cash inflows from the issue of a bond amounting to € 225 million had not been fully invested or used for the repayment of existing bank liabilities before the financial year-end date.

Cashflow statementCashflow from operating activities amounted to € 194.5 mil-lion (2012: € 231.4 million) in the reporting period and was characterised by charter income and management fees in the Maritime Assets segment.

The decline of € 36.9 million in total in cashflow from operating activities compared to the previous year was visible in all segments. The main drivers in the Maritime Assets segment were the diminished KG-funds fleet, lower charter rates for new contracts and also exchange-rate ef-fects; while in the Maritime Services, on the other hand, it was primarily the lower number of KG-fund vessels under management. By contrast, the decline in the Rickmers-Linie segment resulted from the continued stressed market situation, the accompanying low freight rates and also the lower freight volume.

Cashflow from investment activities amounted to € -1.6 million (2012: € 17.3 million). Investment in property, plant and equipment amounting to € 43.1 million related to the acquisition and maintenance (docking) of vessels. Further investments amounting to € 14.2 million were

made within the framework of capital contributions to and increases of capital in associated companies and joint ven-tures. Inflows from the refund of prepayments made for cancelled newbuilds from the Wuhu Xinlian Shipbuilding Co., Ltd. shipyard amounting to € 62.6 million, together with the associated interest payments of € 4.9 million, had a contrary effect.

Cashflow from financing activities amounted to € -117.3 million (2012: € -268.0 million). The main drivers of this development were in particular the repayment of financing liabilities amounting to € 311.2 million and also interest payments of € 86.9 million. A contrary effect was caused mainly by inflows from the issue of the corporate bond amounting to € 225.0 million (inflows from taking up financing liabilities) and inflows of € 41.7 million from partners outside the Group due to the capital increase at Rickmers Maritime, Singapore (in the Maritime Assets segment).

The Rickmers Group’s cash and cash equivalents rose over-all in the reporting period by € 72.7 million to € 144.8 mil-lion (2012: € 72.1 million). 2.3.3 Asset situation

As at the balance sheet date, the Rickmers Group’s total assets amounted to € 2,524.3 million and thus declined by € 150.7 million (2012: € 2,675.0 million).

The shipping fleet constitutes the largest item in non-cur-rent assets, with € 2,242.0 million (2012: € 2,438.3 million). The decline of € 196.3 million compared to the previous year results particularly from depreciation and currency-translation effects.

Current assets rose to € 222.3 million in the reporting period (2012: € 201.4 million). The increase was primarily the result of the rise in the balance of cash and cash equivalents, which was mainly accounted for by the inflow of funds from the bond issue not yet paid out again.

Five ships with a total value of € 26.7 million were re-ported as assets available for sale, since as at the balance sheet date there was the intention to contribute them to the joint venture with funds affiliated with Apollo Global Management, LLC.


Rickmers Group

3 Employees

3.1 Development of the number of employees

In the reporting period 2013 the Rickmers Group had 3,378 employees (2012: 3,490) on average. The changes compared to 2012 are explained by two opposite effects. The reduction of 143 employees at sea mainly due to the sale of KG-fund ships was partly compensated by the Rickmers Group’s expansion of workforce ashore of 31 per-sons. Of all employed staff, 15 percent (503 employees) were working ashore and 85 percent (2,875 employees) at sea. Of all 2,875 seafarers, 1,743 were directly employed by the Rickmers Group, while 1,132 persons were recruited by international crewing agencies.

2012 2013 2011

3,500

3,000

4,000

2,500

2,000

1,500

1,000

500

0

3,490 3,3783,405

Staff changes 2011 to 2013

Ashore At sea Crewing Agencies

With regard to the business segments, the greatest per-sonnel changes are assessed in the Maritime Services seg-ment. Through the outsourcing process of selected crewing services to an external service provider a reduction of 265 seafarers was registered, which were former employed directly by the Rickmers Group. These effects were staff-wise compensated by 122 additional employees of the cooperation partner.

3.2 Recruitment and training

The Rickmers group is exposed to constant change. This calls for a high degree of flexibility from our employees. Therefore, for the selection of staff, it is important that applicants are as diverse as possible. The aim is to recruit people who can combine their specialist qualifications with personal and intercultural skills, people who can put the corporate strategy into practise.

The vocational training of staff has a great importance. Each year several apprentice positions for shipping mer-chants (specialising in scheduled and tramp shipping) and, in Rickmers Holding GmbH & Cie. KG, for IT specialists in systems integration and application development are of-fered. In addition, the Rickmers Group regularly employs interns and graduate trainees across all corporate divisions (controlling, legal, treasury, etc.) and supports bachelor and masters students in writing their theses.

For our seafarers, there are also several programmes through which cadets can complete the training neces-sary to obtain their marine qualifications. Crew training and development is provided with the help of an exter-nal training provider. Additionally, initial and continu-ous training in special areas such as in the operation of ships’ cranes or through training on the ship simulator are provided. Senior onboard staff receives special leadership training.

3.3 Staff development

Staff development at the Rickmers Group means continu-ally supporting employees to further their knowledge and skills where needed. This is granted by providing a holis-tic staff development system and a process for continuous learning within the Rickmers Group.


Annual Report 2013

The Rickmers Academy, the internal training and develop-ment facility, provides professional, industry-based and personality-related ongoing training programmes. A par-ticular feature of the Rickmers Academy lies in its ability to call on the specialist knowledge of its own employees who serve as facilitators in training their colleagues from the various divisions. External facilitators are called on for fur-ther topics. In addition, individual development needs are centrally surveyed by the Rickmers Academy and employees supported in selection, organisation and follow-up. The global exchange of staff between Rickmers Group compa-nies with fixed-term secondment programmes is promoted and coordinated by the academy. The strategy for growth within the Rickmers Group can only be adequately sup-ported by targeting the training and development of all staff. On average, each employee of the Rickmers Group enjoyed 2.5 days of training last year.

3.4 Leadership

Leadership at the Rickmers Group not only means setting a good example, but also treating staff and colleagues with respect, tolerance and sincerity. Further, the staff is actively encouraged to assume responsibility.

Regular performance appraisals are conducted with em-ployees. Besides providing mutual feedback, appraisal interviews also allow for the discussion and agreement of goals for the employee’s personal development. Our agreed targets for managers are often coupled to variable salary components. This annual appraisal programme pro-vides opportunities for open discussion and suggestions for improvement.

3.5 Diversity

To meet international requirements in the shipping indus-try, the Rickmers Group employs people from more than 30 different nations. In a corporate culture that recognises and embraces both similarities and differences, diversity is valued and promoted as a decisive factor for the Group’s long-term success.

3.6 Remuneration

The Rickmers Group provides performance-based remu-neration. Managers have multiple variable salary compo-nents in the form of bonuses granted at the discretion of supervisors and management. This system honours the contributions made by staff towards achieving our corpor-ate goals.

Rickmers-Linie GmbH & Cie. KG is the only company of the Rickmers Group with a collective wage agreement.

3.7 Crewing

An important aspect of the Maritime Services business seg-ment is the worldwide hiring and deployment of seafarers. The Rickmers Crewing Guidelines ensure the seafarers can enjoy a marine career. Bearing in mind the current mar-ket situation, the Rickmers Group is currently focused on optimising the costs of crewing activities and to this end is concentrating even more on the Asian market. As in the past, the aim is to promote a leadership style that is free of any discrimination and favours promotion based on merit. This includes promoting a culture of mutual acceptance of seafarers of different nationalities and cultures on board the vessels.

As part of our efforts to restructure crewing activities and to enhance the administrative planning of ships’ crews, a contract was concluded with an external crew provider in 2013. This will help the Rickmers Group ensure continued access to qualified seafarers, particularly in Asia.

The Rickmers Group is an attractive employer for mariners and offers competitive remuneration, good ongoing crew training as well as help to organise the affairs of the sea-farers, including those extending beyond the purely job-related. High safety standards continue to be a focus.


Rickmers Group

4 Events after Reporting Date

In January 2014, a total of eight vessels were transferred to the joint venture with funds affiliated with Apollo Glob-al Management, LLC. Of these, five vessels recognised as “held for sale” at 31 December 2013, were transferred from the ownership of the Rickmers Group to the joint venture effective as of January 2014. No impairments were recog-nised for the vessels held for sale

On 7 March 2014, Rickmers Holding GmbH & Cie. KG in-creased its corporate bond by a further € 25 million. The increase is subject to the same conditions that apply to the corporate bond placed 2013 at Frankfurt Stock Ex-change’s Prime Standard (tenor until 11 June 2018, coupon: 8.875 percent).

As part of the annual review of ratings, the Verband der Vereine Creditreform e.V. placed the addendum “Watch” to the rating on 10 March 2014, announcing the detailed monitoring of the rating. The “BB” rating is scheduled for review till 7 May 2014.

Rickmers Trust Management Pte. Ltd., trust manager of Rickmers Maritime, Singapore, issued a press release dated 17 January 2014 to acknowledge that funds raised through the rights issue will be used, as announced, in a signifi-cant part to repay bank loans. As a result, a further USD 5.8 million was paid to financing banks.

5 Risk, Opportunity and Forecast Report

5.1 Risk report

5.1.1 Presentation of the risk management system

As part of overall strategic corporate management, risk management within the Rickmers Group regulates the Group’s responsible approach to uncertainties associated with corporate activities. The risk management system comprises all the instruments and measures that allow

possible strategic and operational risks to be identified, measured, controlled and monitored early on in the busi-ness cycle. The aim of the system is to identify incidents that could jeopardize the enterprise and to initiate coun-termeasures and ensure that the targets of the Rickmers Group can be met as planned. Entrepreneurial risks are only taken when these are manageable and reasonably proportionate to the expected benefit from the business transaction.

In the operational business segments - Maritime Assets, Maritime Services and Rickmers-Linie - risk management has largely a decentralised structure. Segments are inde-pendently positioned and have their own decision-making and responsibility, enabling them to identify both internal and external risks. Monthly operational reports inform the Rickmers Holding GmbH & Cie. KG management in good time of potential risks. Detailed comments on the risks support management in the board meetings in its deci-sions on which measures to instigate.

Financial risks are managed by the central Group Treasury & Risk department and the Group Controlling department. The central Group Treasury & Risk department provides management with various reports on the financial risks. Using this as a basis, the Rickmers Group is able to apply adequate countermeasures in good time.

The enterprise is hedging against the financial conse-quences of harmful events in hull and machinery and li-ability incidents to the extent possible through global and comprehensive insurance cover. Both industry-specific and general insurance across the Rickmers Group are continu-ally monitored and updated by means of a comprehensive system of reporting. Insurance cover is placed with prestig-ious insurers on the national and international insurance markets for which the Rickmers Group draws on the ser-vices of a professional insurance broker. The broker for ma-rine insurance is the Cyprus-based company Global Marine Insurance Brokerage Services Ltd., in which the Rickmers Group has a shareholding of 50 percent.

Beyond legal requirements, the Rickmers Group has estab-lished a dual management system including the Execu-tive Board and the Advisory Board. For further information about the Advisory Board as an advisory body see Section 5.1.2 about Governance.


Annual Report 2013

The process of preparation of the consolidated annual report of the Rickmers Holding GmbH & Cie. KG and the correctness of the Group accounting rests on the central Accounting, Controlling and Reporting department’s re-sponsibility. The aim of the internal control system with regard to the Rickmers Group’s accounting is to avoid the risk of material misstatements in accounting. In addition, it ensures that accounting is consistent and in compliance with legal provisions, applicable regulations and generally accepted accounting principles.

With regard to the internal control system in the account-ing process, the following regulations and processes have been implemented to ensure a correct presentation of the financial position, financial performance and cashflows: •All entities included in the Rickmers Group are incorpo-

rated in a firmly defined management and reporting or-ganisation.

•The necessary principles, operational and organisational structure, and process definitions have been documented and are adjusted as well as extended to meet current internal and external developments. Furthermore, pro-cesses and procedures will be increasingly standardised and replaced by technical automated procedures.

•There are consistent accounting and valuation policies for the Rickmers Group.

•The multi-level authorisation and approval procedure provide controls in payment transactions.

•The planning process and the consolidated financial statements are carried out on the basis of a detailed fi-nancial calendar.

•All substantial companies, which are included in the consolidated financial statement, are audited by an ex-ternal auditor.

•At the system level, accounting is prepared using the IT system SAP FI. Each Group package is consolidated on the basis of the IT system SAP FC.

•The half-year report is reviewed.

5.1.2 Governance

The Executive Board and the Advisory Board of the Rickmers Holding GmbH & Cie. KG are committed to securing the company’s viability and to achieving a sustainable increase in enterprise value through responsible and long-term orientated corporate management. The Executive Board and the Advisory Board of the Rickmers Holding GmbH & Cie. KG endorse the aims of the German Corporate Govern-ance Code. Although the Rickmers Holding GmbH & Cie. KG is not listed, the framework of corporate governance at the Rickmers Group take into account the recommendations of the Code in the version dated 13 May 2013 primarily ad-dressing publicly listed companies.

ManagementThe Rickmers Holding GmbH & Cie. KG has a dual man-agement system that distinguishes between the Executive Board as the managing body and the Advisory Board as the advising body. The Executive Board of the Rickmers Hold-ing GmbH & Cie. KG is responsible for the management of the company on its own responsibility. Its responsibilities include determining company goals, defining the stra tegic direction of the Group, managing the Group, corporate planning and Group financing. The Executive Board regu-larly reports to the Advisory Board in a timely and com-prehensive manner on all issues relevant to the company, including business developments, the implementation of strategy, planning, financial performance, and risk man-agement. It ensures compliance with statutory provisions and internal Rickmers Group regulations. The CEO coordi-nates cooperation with the Advisory Board and regularly consults with the Chairman of the Advisory Board.

The Advisory Board advises the Executive Board on strategic issues and important business transactions. The Executive Board and the Advisory Board have a close and mutually trusting working relationship to meet the requirement of quick, but diligent decision-making processes. Fundamen-tal issues of corporate strategy and their implementation are openly discussed and deliberated at joint meetings.

ShareholdersBertram R. C. Rickmers is the sole shareholder in the com-pany. As the shareholder of the Rickmers Holding GmbH & Cie. KG he appoints the Executive Board and members of the Advisory Board.


Rickmers Group

ComplianceThe Rickmers Group and its business segments are active in many countries and various regulatory environments and are therefore subject to different cultural and national standards and legal provisions. It is therefore important that all employees at every level of the company under-stand the Group’s commitment to compliance and share the same values of integrity. Quintessential elements of the corporate culture at the Rickmers Group are compliance with the law, incorruptibility and fair competition. Compli-ance with laws and internal regulations designed to avoid exposure to legal risks and their consequences has for this reason always enjoyed high priority.

TransparencyThe core element of model corporate governance is the transparent presentation of developments and decisions within the enterprise. Constant and open dialogue with all stakeholders secures trust in the enterprise and its value creation.

In order to gain the trust of potential investors and main-tain the esteem of the shareholder, the Rickmers Group has embarked on a policy that ensures a high degree of transparency in financial communication. Shareholders, the Advisory Board, banks, investors and business partners are actively provided with broad information to assess the company’s performance and financial strength.

5.1.3 Risk description and evaluation

The risks of the Rickmers Group as well as the counter measures are observed on a one-year horizon. The evalu-ation of risks takes place before risk minimizing measures are considered (gross method).

The risk situation of the Rickmers Group has not changed significantly compared to the previous year.

The probability of occurrence as well as the possible ef-fects on the business aims of the Rickmers Group need to be considered to evaluate if the risks threaten the ability to continue going concern. On that basis and in terms of the reputation, the business environment, the business activities as well as the financial position, financial per-formance and cashflows of the Rickmers Group, the risks are classified accordingly.

The following chart shows the indicators “Probability of occurrence” and “Effect” as well as their definition and provides the basis for the classification of risks:

Indicators Definition

1. Probability of occurrence

Low Very unlikely

Medium Probably

High Certainly

2. Effect

Unessential Negligible negative effects on financial position, financial performance and cashflows

Minor Limited negative effects on financial position, financial performance and cashflows

Considerable Some negative effects on financial position, financial performance and cashflows

Significant Notable negative effects on financial position, financial performance and cashflows

Substantial Harmful negative effects on financial position, financial performance and cashflows


Annual Report 2013

Risk position of the Rickmers Group

Industry-based risks Business risks Financial risks

Risk factors The Rickmers Group differentiates industry-based risks, business risks and financial risks.

The industry-based risks describe the Group’s dependence on economic developments as well as industry-specific political and other external risks which affect the Rickmers Group’s business operations.

Within the business risks the risks arising from the Rickmers Group’s area of activity as a shipowner, service provider and logistics partner are described, as well as its sensibil-ity for regulatory initiatives or changes in the competitive environment. Furthermore, these include the corporate strategy risk, what contains the influence of risks on the business strategy and the related adjustments. The legal and regulatory risks as well as the personnel risks are a subcategory of the business risks.

Additionally, the Rickmers Group as an internationally active company within its operative business operations is exposed to a number of financial risks. These risks are monitored by the central Group Treasury & Risk department of the Rickmers Holding GmbH & Cie. KG.

The individual risks outline the fundamental risks of the Group and are described in the following section both for the Rickmers Group in general and on the level of the seg-ments Maritime Assets, Maritime Services and Rickmers-Linie as well as for the Corporate Center.

Industry-based risksRisk from political and world-economic developmentsApproximately 90 percent of the global cargo volume is transported by sea. Accordingly, the maritime industry is directly dependent on the global economy and in particu-lar, the global trade volume, and generally responds at an early stage to expected changes in the economic environ-ment. The growth of the global economy, in the last two decades, has particularly been driven by the high dynamics of the emerging economies. The weak economic growth of the United States of America and in particular of countries in the European Union has affected the global economic growth since 2008. This also had a negative impact on the emerging markets. No assurance can be given that there will be a sustained growth of the global economy or in the emerging economies and that these economies will not experience contraction in the future. A negative change in the global economic conditions could impact negatively on customers of the Rickmers Group and consequently on the operating business.

Given that Rickmers Group conducts its business through various subsidiaries in countries throughout the world, Rickmers Group’s business is directly and indirectly sub-ject to the political, economic and social conditions of the countries where it, the owned vessels or managed or op-erated vessels and its respective customers operate and where the ports called by the vessels are located. For the Rickmers Group this can result in severe disruptions to business operations or a decline in demand for transport by sea or the provision of services.


Rickmers Group

To counter the risk of global economic developments, the Rickmers-Linie business segement tries to flexibly adjust the composition of its fleet of ships chartered on long and short-term agreements to match demand. In the Maritime Assets segment, an already secured, long-term chartering out of the ships safeguards the utilisation of the fleet.

The risk from political and financial developments has a low probability of occurrence. If this occurs, significant ef-fects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Risk from charter contractsThe maritime industry is highly fragmented among many global and regional shipowners and operators of vessels and is characterised by intense competition. Charter rates and, in particular, rates on short-term charter contracts are prone to considerable variations. Changes in the demand for vessel capacity are difficult to predict and are beyond Rickmers Group’s control. Rickmers Group faces competi-tion from a variety of parties, including regional and global ship owners, liner and other shipping companies, ship-management companies and other providers of shipping services, many of which are larger and may have greater financial resources than Rickmers Group. These competi-tors may be able to operate larger or more modern fleets, offer more favourable charter and freight rates and devote greater resources to the development, promotion and em-ployment of their vessels, their transport services and other maritime services than Rickmers Group. This holds the risk that new outward charters could be lost to the benefit of competitors, as a result of which the Rickmers Group would suffer losses in ship employment options. Laying up of ships or charter agreements at lower rates could lead to increased pressure on profit margins.

A further disadvantageous effect on the business oper-ations of the Rickmers Group could arise from the consoli-dation process in the container shipping industry, whereby revenues would have to be achieved with a small number of charterers. The planned cooperation of the world’s three largest container shipowners Maersk, MSC and CMA CGM on a number of transport routes could have a negative impact on the Maritime Assets segment in terms of its role as a chartering operator. The aim of the cooperation is to generate higher utilisation of the members’ ships, so that consequently the Rickmers Group could suffer more diffi-cult conditions in the chartering out of its ships. This effect

could be even worse if the alliance used its own fleet of ships for joint projects or other liner shipping companies decided to copy the pattern of the planned alliance.

Some charter contracts may contain conditions for early termination. Due to the existing competition and the strained market situation, moreover, there is the risk of new negotiations forced through by the charterer to reduce the charter rate, which would be associated with losses of revenue and liquidity shortages in the Maritime Assets segment.

Should a charterer become insolvent, charter contracts in the Maritime Assets segment would be terminated early and the Rickmers Group may, under certain circumstances, not be in a position where it could charter out the ship under attractive terms, or indeed at all. The consequence of this could be possible inadequate coverage of operating costs plus additional unexpected financing costs. Further-more, also insolvencies of customers in third-party man-agement in the Segment Maritime Services or customers of the Rickmers-Linie segment can lead to payment de-faults. This can have a negative effect on the cashflow of the Rickmers Group.

The Rickmers family can look back at a tradition of some 180 years in shipping and “Rickmers” enjoys a high level of brand awareness particularly in the Asian region. Due to the Rickmers Group’s good networking with all the important players along the supply chain in the mari-time sector and its known high quality standards, the Group sees itself as being in a strong position, even in the future, to successfully secure charter agreements. The Rickmers Group strives to maintain sustainable customer relationships. Foreseeable problems are discussed ear-ly on in an open and transparent dialogue and appro-priate countermeasures are initiated. To safeguard future cashflows, current charterers with good creditworthiness, such as Maersk, Mitsui O.S.K Lines and Hyundai, are cur-rently Rickmers Group’s major charterers, representing ap-proximately 75 percent of its fixed charter revenues with remaining charter periods of up to eight years. With its strategic investment partner funds affiliated with Apollo Global Management, LLC, the Rickmers Group considers it-self capable of acting in the face of competition from its business rivals to seize market opportunities early on. To avoid or reduce credit defaults from operational business, the Rickmers Group has a corresponding receivables man-agement system.


Annual Report 2013

The risk from charter contracts has a medium probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Risk from reducing freight rates and cargo volumesIn its Rickmers-Linie business segment, the Rickmers Group operates as a breakbulk, heavy lift and project cargo liner service. Accordingly, its revenues are mainly derived from freight rates, which, tend to fluctuate significantly in response to supply and demand for maritime cargo trans-portation services. Rickmers-Linie segment sees itself faced with the risk of falling freight rates. Amongst other things, this could arise from increased price competition and pro-tectionist trends and low demand for transport capacity, which also leads to a low freight volume. A further risk for Rickmers-Linie arises from the fact that in the strained container transport market the carrying of cargoes that are typical for Rickmers-Linie may also be performed by con-tainer ships and bulk carriers and can result in a fall in orders. Moreover, an imbalance in the cargo mix between transporting high-value goods with high-revenue poten-tial and so-called basis-load cargoes with comparatively low revenue potential can strain the average attainable freight rate. This leads to the risk of a negative effect on the revenue amount, the profit margin and the operating result of Rickmers-Linie.

To counteract against an exceptional fall in freight rates, Rickmers-Linie provides high quality service as a liner shipping company with schedule reliability combined with specialised know-how. Suitable cooperation with locally domiciled business partners reduce the risk of price changes and competition risks caused by protectionism. Furthermore, in 2013, Rickmers-Linie reinforced its efforts to expand its sales organisation, in order to make the re-quired capacity utilisation and the acquisition of high-value cargoes possible.

The risk from reducing freight rates and cargo volumes has a medium probability of occurrence. If this occurs, sig-nificant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Risk from low ship valuesThe market values of ships are generally volatile and cur-rently stand at a long-term low. The market value of the vessels owned or managed by Rickmers Group may further fluctuate substantially over time due to a number of dif-ferent factors, including, amongst others: supply of and demand for similar types of vessels, the characteristics of the ship, changes in applicable environmental or other regulations or the development of port infrastructure. The building of new, more technically advanced ships, which are more efficient or more flexible than vessels owned or managed by Rickmers Group, can have a negative effect on the ship’s value. Should ship values be low, the Rickmers Group is exposed to a particular risk that if a ship disposal is driven by the actions of a third party, the sales price may lie below the book value of the ship sold. This may result in a loss due to impairment in the Rickmers Group’s income statement. Through the shortfall of proceeds, the coverage for outstanding residual debt from the financing contracts for the respective vessel may not be guaranteed. Moreover, low market values of ships not available for sale could result in breaching performance obligations arising from financial contracts. An infringement of loan-to-value ratios could lead to a breach of contract forcing early re-payment. The required impairments as a result of the low market values of ships could have a negative impact on the equity of the Rickmers Group.

To counter the risk of a fall in ships’ values, the Maritime Technology department was founded in 2013 within the Maritime Services segment. With technical modifications to the existing fleet, individual components are being up-graded to make the fleet more competitive. Alongside in-novations, the Rickmers Group attaches great importance to ongoing maintenance and overhaul of its technology. On a semi-annual basis, the ships of the Rickmers fleet are evaluated and if necessary impairments or adjustments re-garding the maturity structure by ship disposals are made.

The risk from low ship values has a medium probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.


Rickmers Group

Business risksRisk from regulatory obligations and constraintsEvery oceangoing vessel in international trade must be inspected and certified by a classification society ac-cording to the relevant classification conditions govern-ing engineering and operation. Extensive environmental laws and regulations that are regularly updated must be complied with. Especially for older vessels, these laws and regulations may complicate servicing and maintenance. Moreover, shipping companies are dependent on operat-ing permits and licences, which must be extended or re-newed at regular intervals. Due to continuously changing laws and regulations, the Rickmers Group may be liable to considerable costs for the fulfilment or non-fulfilment of existing and new rules.

To avoid possible losses of earnings and increased costs, the Rickmers Group complies with internal regulations, that ensure the maintenance and servicing of its ships conforms to regulations. Advanced innovations with re-gard to energy efficiency are not only targeted at fulfil-ment of the required standards, but rather set benchmarks for the Rickmers Group. Legal requirements are constantly checked by the Quality, Health, Safety and Environment (QHSE) department so that the segments concerned can be immediately informed and adequate measures introduced.

Rickmers Group operates its business through various subsidiaries and accordingly is subject to the respective national tax legislations. Tax laws and regulations can be highly complex and subject to interpretation and change in general. Adverse changes to tax laws, in particular high-er tax rates or the termination of tax incentives may have a negative impact.

Moreover, tax risks can arise from audits conducted by the tax authorities. Rickmers Group is of the opinion that its group companies have duly filed their tax returns and duly made all obligatory tax payments. Nevertheless, sub-sequent tax payments could be assessed as a result of a tax audit.

Rickmers Group maintains a suitably qualified internal Tax department to guarantee the correctness of taxes and du-ties due under law and to properly manage taxation risks. In addition, Rickmers Group is permanently advised by re-nowned tax advisory firms worldwide. The risk from regulatory obligations and constraints has a low probability of occurrence. If this occurs, significant ef-fects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Risk from unexpected limited availability of shipsThe availability of a ship can be reduced by various factors. Technical issues could lead to operating constraints. These could arise from normal wear and tear of the ships or could arise from other causes. In addition to downtimes caused by regular maintenance and repair, the classification soci-ety could withdraw class from a ship for technical reasons. In this case the ship is no longer seaworthy until the nec-essary repairs and inspections have been performed and the ship again fulfils the classification society rules without any limitations. Moreover, there is a risk of the ship being arrested by private creditors or state inspection authorities due to outstanding receivables or the non-compliant state of the ship.

The arrest or technically imposed downtimes of one or more ships of the Rickmers Group could delay the expected payment receipts from charterers or could lead to payment defaults and thus negatively impact on sales and the de-velopment of costs. Under certain circumstances, longer downtimes could also trigger time charter rights to cancel.

To guard against this risk, the Rickmers Group uses a “Planned Maintenance System” on its ships, which min-imises downtimes though appropriate maintenance. Moreover, required technical standards are checked regu-larly and the QHSE department ensures that all necessary certificates are present and valid. Systems-based checking of liabilities ensures that payments are made by the due date. Furthermore, the Rickmers Group took out respective insurance policies for its fleet.


Annual Report 2013

The risk from unexpected limited availability of ships has a low probability of occurrence. If this occurs, minor ef-fects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Risk from unexpected operating cost increases A risk for the Rickmers Group could arise from an increase in ship’s operating costs, in particular due to increases in the prices paid for lube oils and bunker. The price of crude oil is unpredictable and fluctuates based on a variety of economic and geopolitical factors, which are beyond Rickmers Group’s control. The prices for lube oil and bun-ker vary in close accord with crude oil prices. In general, for time charter contracts, the charterer is obliged to pay bunker costs, while the shipowner is responsible for lube oil costs. Consequently, the lube oil costs must be borne at the segment level of Maritime Assets, as the shipowner, so that it is exposed to the risk of rising lube oil costs. This risk can also occur in the Maritime Services segment in special cases involving fixed-price management contracts. In this case a fixed lump sum is agreed to cover operating ship costs including the cost of lube oils.

By contrast, Rickmers-Linie, which within the scope of the charter contracts is responsible for bunker costs, is exposed to the risk of increasing ship fuel prices. In line with in-dustry-standard practices, an attempt is made to appor-tion possible bunker price increases to the freight rate by means of a contractually agreed bunkers surcharge. Nev-ertheless, it remains to be seen whether it will be possible to pass on the full amount of future bunker price increases.

The risk from unexpected operating cost increases has a medium probability of occurrence. If this occurs, consid-erable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Liability risk as well as risk from actual and threatened litigationsDue to its activities in the shipping industry, the Rickmers Group could be exposed to liability risks as well as risk from actual and threatened litigations. Rickmers Group companies are regularly involved in minor and, less fre-quently, major legal disputes, including disputes over li-ability for damage to vessels and cargo and contractual disputes with suppliers and clients. Consequently, the business segment Rickmers-Linie is primarily confronted with potential liability risks. Claims from creditors against the Rickmers Group could also be implemented by means of ship arrests.

Some Rickmers Group companies are currently involved in litigations. This includes individual disputes relating to taxation issues, liability losses in respect of ships and cargo as well as to processes arising from existing contractual relationships with suppliers and customers and with refer-ence to fund investments in funds initiated or managed by Group companies. The Rickmers Group initiated an arbitra-tion procedure against a charterer due to an incomplete charter payment, which is divergent from the contractual agreement. If the judgements of these legal disputes go against the Rickmers Group, considerable costs could re-sult, which, under certain circumstances, may not covered by its insurance and could lead to losses. In any case, these processes could involve considerable legal costs.

Liability losses in respect of ships and cargoes are appro-priately insured. The qualified Legal department of the Rickmers Group in cooperation with renowned law firms takes its legal disputes seriously in order to limit financial damage to the Group as far as possible. To limit the finan-cial consequences of these risks, corresponding provisions have been recognised in the annual consolidated financial statements. Currently, there is no evidence of cases that could lead to constraints on the business operations of the corporate Group.

The liability risk together with risk from actual and threat-ened legal disputes has a medium probability of occur-rence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.


Rickmers Group

Risk from IT systemsThe Rickmers Group business is dependent on IT systems. To enable the capabilities of the services offered in the business segments, information must be available directly, quickly and in an integrated format. A failure of IT systems could impact negatively on a wide range of factors in the particular business areas. Not to be excluded here are a loss of reputation, burden regarding operating results and operating costs as well as liquidity outflows. Moreover, the Rickmers Group has outsourced a part of the IT systems to service providers based in the European Union for support and supervision services. Rickmers Group aims to monitor these third-party service suppliers using controlled pro-cesses. However, a comprehensive control of such suppliers may not be guaranteed.

Due to the current structure of the network and the layout of the data centre, it can largely be ensured that in the event of a catastrophe, failures and damage would not occur in all areas of the data centre. Nevertheless, a failure of the central and backup systems as a result of damage due to fire, flooding or power outages cannot be excluded. Unauthorised access can largely be excluded based on a defined access control concept. All systems are protected by firewalls and other protection mechanisms such as spam filters and anti-virus systems. Data is safeguarded through daily backups onto different media, to minimise any loss of data that might occur.

The risk from IT systems has a low probability of occur-rence. If this occurs, minor effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Personnel riskA qualified workforce forms the foundation for the imple-mentation of the business strategy as well as the sustain-able economic success of the Rickmers Group. The loss of managers or other know-how carriers without adequate successors or difficulties in hiring or retaining qualified employees and managers in the company could have negative effects on business operations, in that it is not possible to work effectively towards the corporate goals. Although the Rickmers Group strives to maintain a good

relationship with its employees, it is not certain that it will always be possible to maintain such a relationship in the future. Industrial action or other industrial unrest caused by manpower made available by third parties could result in the Rickmers Group not being in a situation where it can implement its activities as planned and fulfil customer orders on time.

To counter this risk, Rickmers Group operates a short, medium and long-term planning policy in respect of the personnel requirement taking into account the strategic alignment of the company. Additionally, managers and other key personnel are supported through individual qualification and training measures in order to develop their competencies and bound to the company over the long-term through a performance-related remunera-tion system combined with various employer additional contributions.

The human resources risk has a low probability of occur-rence. If this occurs, minor effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Financial risksRisk from the insolvency of KG-fundsThe risk of insolvency of KG-funds particularly affects the Maritime Assets and Maritime Services segments. Triggered by the economic and financial crises, the business risks for KG-funds have increased in recent years. Risks of this nature may arise from the default of significant contractual partners, such as charterers, who themselves may be in financial distress because of falling freight rates.

For the Rickmers Group the worsened economic situa-tion of some KG-fund ships brings with it the default risk on receivables. Beyond this, there is the risk of possible impairments on KG-fund investments that the Rickmers Group holds. As significant impairments on investments as well as on outstanding receivables were made in 2012, the risk of impairments in 2013 is considerably reduced. As of 31 December 2013, Rickmers had completely written off six investments and made further impairments on receivables and other assets.


Annual Report 2013

For some individual companies of the Rickmers Group, in their capacity as limited partners of the KG-funds, there is also the risk of having to repay payments already received, which, as preliminary dividends, are not covered by prof-its. Moreover, there is a risk that KG-fund investors will attempt to make claims for compensation against Rickmers Group companies, although the Rickmers Group does not expect any such claims in the forecast period.

Through the sale of 41 KG-fund ships to date, the risk from the insolvency of KG-funds has been considerably reduced. Through close consultation with all participants, jointly ac-ceptable solutions are prepared and implemented.

The risk from insolvency of KG-funds has a medium prob-ability of occurrence. If this occurs, minor effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Debt riskThe net financial liabilities of the Rickmers Group at the end of 2013 amounted to € 1,575.0 million (2012: € 1,748.8 mil-lion). The ability to service the debt and other expenses is dependent on the future business and earnings develop-ment of the Rickmers Group. Future financing conditions and terms in respect of follow-on or refinancing will be dependent on the creditworthiness of the Rickmers Group as well as on the money and capital market environments.

The attainment of certain key financial indicators and com-pliance with contractual covenants influences the future provision of external debt. These limitations and perfor-mance obligations could have a negative effect on the fu-ture development of the Rickmers Group.

Some terms contained in significant loan agreements with the Rickmers Group were not complied with in 2013. This was, in part, due to the successful issuance of the cor-porate bond / the investments made subsequently. Interest and repayments were rendered in all cases.

To guarantee maximum possible transparency, regular re-porting on the development of the Rickmers Group is per-formed and close contact maintained with the financing banks. The Rickmers Group is currently negotiating with its banks to develop an appropriate framework for future cred-it terms jointly. This should reflect the significant changes to the financial environment following the issuance of the corporate bond and the transition to IFRS in 2013.

The debt risk has a medium probability of occurrence. If this occurs, significant effects on the Rickmers Group’s fi-nancial position, financial performance and cashflows are expected.

Credit riskFrom its operational business and from certain other financial instruments, the Rickmers Group is exposed to the default risk of its business partners not or not com-pletely being able to meet their obligations. The credit risk from liquid assets only applies to banks. For this, the Rickmers Group maintains short-term money market investments.

The bank default risk covers all financial instruments con-cluded with banks.

Credit default risks resulting from financial instruments are counteracted by a diversification of contracting parties as well as a regular creditworthiness review of these parties. To avoid or reduce credit defaults from operational busi-ness, the Rickmers Group has a corresponding receivables management system that regularly monitors debtors and the maturity structures of trade receivables.

The credit risk has a medium probability of occurrence. If this occurs, significant effects on the Rickmers Group’s fi-nancial position, financial performance and cashflows are expected.


Rickmers Group

Liquidity riskLiquidity risk is the risk of not having sufficient liquid assets to meet payment obligations on time. To avoid or reduce the liquidity risk, the Rickmers Group has put in place a liquidity management which centrally monitors Group liquidity in the central Group Treasury & Risk department. Steering parameters for the existing and future payment obligations are the available cash reserves, which comprise bank balances, short-term money deposits as well as a credit line amounting to USD 165.0 million, which is firmly committed until 31 December 2014, but undrawn at the financial year-end date. The cash management takes place via a rolling group wide liquidity planning system. To ensure optimum use of the liquidity available in the Group, the liquid assets of the core Group companies are concentrated together by cash pooling. Excess short-term liquidity is invested in money market transactions.

The Rickmers Group is exposed to a significant concentration risk where liquidity risks are concerned. Thus, the significant external finance sources are derived from a portfolio of banks, where more than one-third of the financing volume is attributable to a single counterparty. Given the successful entry into the capital market, other independent financing options, essentially from the banking sector, now exist and reduce this risk.

The liquidity risk has a low probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Currency riskFor each company within the Rickmers Group there is a currency risk as soon as transactions are completed and the resulting cashflows do not correspond to the operat-ing currency of the Group’s company. The Rickmers Group reports in Euro in its annual report. A large portion of the services in international shipping are invoiced in USD. This concerns in particular charter and freight rates, fuel costs and fees for ship and crew management. Ship purchases usually take place in USD and accordingly, ship financing occurs almost exclusively in USD.

A part of the payments in foreign currencies can be bal-anced out through Group-internal transactions. To limit the remaining risks from exchange rate changes, the Rickmers Group concluded hedging transactions in 2013 as far as necessary. In spite of the reduction of exchange rate risks, unforeseen exchange rate fluctuations could influence Group earnings.

In the event of a change of the EUR/USD exchange rate by +/-5%, an earnings effect before taxes regarding financial instruments of € -21,000 / € +142,000 would occur as at 31 December 2013.

In the event of a change of the EUR/JPy exchange rate by +/-5%, an earnings effect before taxes regarding financial instruments of € +286,000 / € -316,000 would occur as of 31 December 2013.

In the event of a change of the USD/JPy exchange rate by +/-5%, an earnings effect before taxes regarding financial instruments of € +60,000 / € -66,000 would occur as of 31 December 2013.

The currency risk has a medium probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Interest rate riskInterest rate risks arise through variations in the variable market interest rate and, in the case of fixed interest fi-nancial instruments, can lead to a change in the fair value while in the case of variable rate financial instruments can lead to interest payment fluctuations. The Rickmers Group interest rate risk results primarily from variable interest rate ship-financings.

With the help of interest rate hedging instruments, the Rickmers Group establishes a reasonable relation between variable and fixed-interest financial liabilities.

A parallel shift of the interest curve by +100 basis points would increase earnings before taxes as at 31 December 2013


Annual Report 2013

by €+3.2 million. This would consist of a negative effect from primary financial instruments (in particular variable inter-est bearing bank loans) of €-9.0 million, which would be overcompensated by a positive effect from interest deriva-tives of €+12.2 million. In addition, equity would increase because of interest derivatives in a hedging relationship by €+2.2 million.

In contrast, a shift of the interest curve by -50 basis points would reduce earnings before taxes as at 31 December 2013 by €-3.9 million. A positive effect from primary financial instruments of €+2.5 million would be overcompensated by a negative effect from interest derivatives of €-6.4 million. There would be a negative effect on equity amounting to €-1.0 million.

The interest rate risk has a medium probability of occur-rence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

5.2 Opportunity report

5.2.1 Presentation of the opportunity management system

The long-term basis for the opportunity management system lies in strategic planning and the measures derived from this to develop services and position them in the markets across their life cycle. The Rickmers Group monitors and analyses the relevant markets by drawing on market data, on the one hand, and as part of personal dialogue with the business partners, on the other. In order to respond flexibly to market changes, the Rickmers Group works continually on improving corporate structures and processes.

5.2.2 Opportunity description and evaluation

The opportunities of the Rickmers Group are observed on a one-year horizon.

The opportunity situation of the Rickmers Group has not changed significantly compared to the previous year.

The probability of occurrence of opportunities as well as the possible effects on the business aims of the Rickmers Group need to be considered to evaluate the character of the opportunity. On that basis and in terms of the reputation, the business environment, the business activities as well as the financial position, financial performance and cashflows are classified accordingly.

The following chart shows the indicators “Probability of occurrence” and “Effect” as well as their definition and provides the basis for the classification of opportunities:

Indicators Definition

1. Probability of occurrence

Low Very unlikely

Medium Probably

High Certainly

2. Effect

Unessential Negligible positive effects on financial position, financial performance and cashflows

Minor Limited positive effects on financial position, financial performance and cashflows

Considerable Some positive effects on financial position, financial performance and cashflows

Significant Notable positive effects on financial position, financial performance and cashflows

Outstanding Exceptional positive effects on financial position, financial performance and cashflows


Rickmers Group

Industry-based opportunitiesOpportunity arising from sector consolidationSince 2009, the shipping industry has had to face the chal-lenges stemming from a persistent crisis in the business environment, which amongst other impacts is responsible for the current difficult financing situation. The fundamental requirement for a working business model is, besides the operative business, a sufficient supply of capital, which some competitors are almost certainly finding hard to guarantee. Market consolidation is the probable consequence. Due to its strong asset ownership and leasing model, the Rickmers Group expects to benefit from a market consolidation.

The opportunity arising from sector consolidation has a medium probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Opportunity arising from low newbuild pricesWhile on one hand, the rise in newbuild commissions is set to fill established shipyards’ order books over the coming years, and global shipbuilding capacity has fallen by around one-third over the last two years, on the other, overcapac-ity persists in the shipbuilding industry. This has brought prices for newbuilds to a low level. There is currently no expected price rise in the newbuild market and there rather is assumed stagnation at the current level. The Rickmers Group sees an opportunity to benefit from these relatively low prices.

The opportunity arising from low newbuild prices has a high probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Opportunity arising from the development of worldwide freight volumeCurrent forecasts predict continued growth in worldwide container-transport volume. This growth could accelerate by the planned Transatlantic Free Trade Agreement between the European Union and the United States of America.

On 13 February 2013, an agreement was reached to negotiate a strengthening of transatlantic trade relations, with the objective of creating a transatlantic trade and investment partnership. The focus of the Transatlantic Free Trade Zone is on removing both tariff and non-tariff trade barriers. Resulting from such a strengthening of trade relations and the consequent increase in economic activity, the Rickmers Group sees a possible rise in freight volumes for the routes between Europe and America.

The Rickmers Group’s Maritime Assets business segment stands to benefit from this rise in demand through charter-ing of vessels. Moreover, an increase in investment activity in the global plant and equipment-building industry is expected, and with this a rise in demand for corresponding freight services for breakbulk, heavy lift and project cargo, which could be positive for Rickmers-Linie.

The opportunity arising from the development of worldwide freight volume has a medium probability of occurrence. If this occurs, minor effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Business opportunitiesOpportunity arising from years of experienceRickmers Group’s management has comprehensive and long-standing experience in the shipping industry, covering all areas of the maritime value chain. With its depth of knowledge and years of experience not only in shipping but also in the financial sector, the interdisciplinary manage-ment is driving the strategic realignment of the Rickmers Group and represents a key competitive advantage at a time when financing is becoming progressively more dif-ficult for the shipping industry and furthermore, ensures a high execution ability of the management. Besides this, management enjoys outstanding relationships stretching back years with all actors in the shipping sector, such as shipyards, charterers, banks and various investment groups. In these relationships, the Rickmers Group sees the op-portunity to secure future access to financing, suppliers and customers.


Annual Report 2013

The opportunity arising from years of experience has a high probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Opportunity arising from the trend towards energy efficiency Environmental protection and energy efficiency are set to play an increasingly significant role in the shipping sector. To play an active part in shaping this trend, in 2013 the Rickmers Group established its Maritime Technology de-partment with a focus on energy efficiency, environmental protection and innovations. The Rickmers Group is the first German company in the shipping industry to achieve ac-credited certification to the international ISO 50001 (Energy Management System) standard by GL Systems Certification for its offices in Hamburg and Singapore, as well as for ten ships so far. To improve energy efficiency and ensure the attractiveness of its vessels, the Rickmers Group has intro-duced the EMMA™ Energy Monitoring Management System on board of five of its ships. This is aimed at supporting the dedicated shipmanagement teams in operating the vessels as energy efficiently as possible and in saving fuel. The opportunity thus presents itself to the Rickmers Group to achieve cost benefits and to lower emissions through measures to reduce fuel consumption and through op-timisation of ship operation. Further energy-efficiency measures such as modifications to the bulbous bow have already been implemented in some ship classes and pro-gressively expanded. Furthermore, the Rickmers Group sees the opportunity of offering the measures it has already es-tablished on its own ships to maritime partners.

The opportunity arising from the trend towards energy ef-ficiency has a high probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial po-sition, financial performance and cashflows are expected.

Opportunity arising from long-term, direct customer relationships and the expansion of global presenceRickmers-Linie enjoys long-standing customer relation-ships, allowing it direct access to customer freight. Well

over 80 percent of annual freight volume is generated via the company’s own worldwide network of 16 offices, and just a small fraction via third-party agencies. The expansion of sales organisations in 2013 is being driven by investment in growth markets. Through close customer proximity it is intended to influence customers’ freight placements in favour of Rickmers-Linie.

The Rickmers Group’s presence in the Asian region has been strengthened by establishing Rickmers Asia Pte. Ltd., Singapore, as a regional headquarters.

The opportunity arising from long-term, direct customer relationships and the expansion of global presence has a medium probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Opportunity arising from cooperationAgainst the background of the persistent shipping crisis, the Rickmers Group is facing the challenge of accessing alternative sources of capital. Hereby, the focus is in par-ticular on cooperation between the private equity sector and the shipping industry since December 2012. As operative partner of one of the leading investment companies, Oaktree Capital Management L.P., the Rickmers Group undertakes shipbuilding supervision advisory as well as the techni-cal and commercial management of the ships, which are scheduled for delivery in 2014 and 2015.

A further key step in accessing new sources of capital is the joint venture signed in September 2013 with funds affili-ated with Apollo Global Management, LLC. This has a total investment volume of up to USD 500 million. Investments over a period of several years are planned with a focus on ships in the second-hand market. The joint venture may be expanded later to include new tonnage or other ship-related investments, should the partners identify attractive projects in these areas and jointly agree to pursue them. The Maritime Assets and Maritime Services business segments will provide a range of services including commercial and technical shipmanagement for the jointly acquired fleet.


Rickmers Group

In the Maritime Services business segment economies of scale have been achieved since the end of 2013 by cooperat-ing with an external crewing services provider, especially in recruitment. The partial outsourcing of processes is intended to raise competitiveness regarding flexibility, quality, ser-vice readiness and price. This will have a positive effect in both qualitative as well as financial terms on ships in the Rickmers fleet.

The opportunity arising from cooperation has a high prob-ability of occurrence. If this occurs, outstanding effects on the Rickmers Group’s financial position, financial perfor-mance and cashflows are expected.

Opportunity arising from the presence in AsiaThe current comparatively strong growth in Asia and the region’s increasing importance as a business location has also shifted the weight of global sea freight towards Asia. A core driver of intra-Asian trade is the rise in consumption and living standards in China and the South-East Asian states. The near- and reshoring of production in the proxim-ity of Asia as a sales market is set to further strengthen this trend. Investments in port infrastructure are a precondition for further growth here; for example, Singapore’s container port is set to double in size by 2020. To secure a strategically optimal position at the hub of the shipping sector and to be able to benefit from a networking of all key actors along value chain, in 2013 the Rickmers Group established Rickmers Asia Pte. Ltd., Singapore, with commercial and technical shipmanagement functions. From this basis the Group sees the opportunity to benefit from strategic cooperation and access to the Asian growth market.

The opportunity arising from the presence in Asia has a high probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Opportunity arising from synergies from system standardisationThe technical management of the Rickmers Group’s ves-sels as well as those of third-parties presents the Maritime Services business segment with numerous organisational and process-related challenges. Here, this business seg-ment is pursuing the goal of optimising global processes and procedures onshore as well as at sea through stand-ardisation, thus increasing efficiency. In this context an “Integrated Management System” (IMS) was introduced to improve process quality. Furthermore, with the new, integrated shipmanagement software to be introduced it is expected a process optimisation in the areas of procurement, maintenance, incident reporting and risk management. Besides a more transparent structure, standardisation leads to lower ship-operation costs for the Rickmers Group as well as for its customers. Due to these lower operating costs and more reliable shipmanagement, the Rickmers Group sees the opportunity to expand its existing customer base. In addition, within the Rickmers Group, system standardisation presents the opportunity to harness synergy effects across differing Group companies, in particular within the Maritime Services business segment.

The opportunity arising from synergies from system stand-ardisation has a medium probability of occurrence. If this occurs, considerable effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

Financial opportunities Opportunity arising from flexible adjustment of the financial strategySince the financial crisis in 2008 capital sourcing proved extremely tough for the shipping industry. Due to low freight and charter rates, low capacity utilisation and the financial industry’s stricter refinancing conditions, banks were as a


Annual Report 2013

rule not, or only partially, in a position to make finance available to shipping companies. The Rickmers Group recog-nised this development at an early stage. Due to its lean ownership structure the Rickmers Group is able to react flex-ibly and take decisions quickly. Initial measures were taken to adjust to the requirements of the changed market and to orientate it towards the needs of investors, banks and other capital providers. The most important measures amongst others were the strengthening of the top management and the expansion of the external orientated reporting. With the current conversion of International Financial Report-ing Standards (IFRS), the Rickmers Group has opened up to the international capital market and has responded to the demands of worldwide investors. The internationalisation provides opportunities for the Rickmers Group to access further capital sources that will secure constant growth.

The opportunity arising from flexible adjustments of the financial strategy has a high probability of occurrence. If this occurs, significant effects on the Rickmers Group’s financial position, financial performance and cashflows are expected.

5.3 Forecast

5.3.1 Economic environment

Overall economic situationThe International Monetary Fund (IMF) forecasts the eco-nomic upturn already visible in the second half of 2013 to continue and to lead to a global economic growth of 3.7 percent in 2014. This forecast is mainly based on an economic recovery in the developed countries.

The IMF describes the relatively low rate of inflation in the industrialised nations as a risk to the global economy, as this could give rise to a progressive increase in real debt. For the developing countries, however, the IMF expects the greatest risk to be an outflow of capital following a normalisation

of monetary policy in the industrialised nations. Overall, the IMF forecasts economic growth of 2.2 percent for the industrialised nations in 2014 (2012: 0.9 percent). Given continued low domestic demand, and a simultaneous in-crease in foreign demand, the IMF foresees overall growth of 5.1 percent (2012: 0.4 percent) for the developing and emerging countries in 2014.

Development in the shipping industryBased on a recovery in the developed economies, Clarksons forecasts a rise in global container trade of 6.0 percent for 2014.

In view of the current offer surplus on the Far East–Europe route, which is set to worsen due to the added tonnage from container ships currently on order, the business situ-ation for the liner services is likely to remain difficult for the foreseeable future.

For 2014, Clarksons forecasts a rise in trade volume of 5.0 percent on the main trading routes (2012: 3.9 percent). This assumes an increase of 5.1 percent on the Far East–Europe routes (2012: 4.0 percent), and a rise of 5.2 percent on the eastbound transpacific route (2012: 4.0 percent). Growth of 5.6 percent is forecasted for North–South traffic (2012: 4.3 percent) and 6.9 percent (2012: 6.6 percent) for intraregional container trade.

Alphaliner expects delivery of container newbuilds with an aggregated freight capacity of 1.6 million TEU in 2014, which would represent a new record year. Despite the ex-pected global economic upturn in 2014 the ratio of available shipping tonnage to freight volume demand is likely to be burdened by the probable high number of newbuild deliveries. The main trade routes between Asia and Europe will be particularly affected.

Concerning the charter market, a varying development across the individual ship classes is expected. For instance, a challenging market situation for Panamax-class vessels, as well as a continued gradual improvement in rates for Feeder-tonnage is expected. As relatively few Feeder-class newbuilds are to be delivered in 2014, a positive increase in charter rates that deviates from the general forecast may become visible in this segment.


Rickmers Group

Regarding the main shipping regions, Maritime Strategies International (MSI) assumes that in 2014 freight rates will remain at a low level both on the Far East–Europe and the transpacific routes, as the price-leaders amongst the liner shipping companies are generating acceptable profits even under these conditions. While for smaller market players’ options of raising freight rates in an oversupplied market are seen as scarce, only the larger players are in a position to drive a development towards sustainably higher freight rates. This development is forcing liner shipping companies to focus on cost reductions and to dispose of inefficient ships.

Although newbuild commissions across all vessel classes (containers, tankers and bulkers) have filled the order books of the established shipyards for the coming years and global shipbuilding capacity has fallen by around a third over the last two years, an overall surplus in shipbuilding capac-ity still persists. Capacity is currently around twice what is required for a sustainable development in line with the long-term growth trend.

In the project cargo business relevant to Rickmers-Linie, Drewry assumes a continuation of growth at 11.6 percent for 2014, above the level of the previous two years (2013: 8.4 percent; 2012: 6.4 percent).

According to Drewry, demand for multi-purpose carri-ers is set to grow by 4.9 percent annually up to 2016. In contrast, fleet development and thus the availability of multi-purpose carriers are assumed with an annual growth of only 4 percent. Nevertheless, Drewry expects that major improvements in charter rates for multi-purpose carriers will first take hold when the market for bulkers and container transportation has recovered enough for the handy-size bulker fleet to begin shipping more bulk cargo again, mean-ing it is therefore no longer in competition for project cargo with multi-purpose carriers.

5.3.2 Development of the Rickmers Group

Within the forecast, the expected developments of the Rickmers Group in 2014 will be described. These are state-ments and information about the future, which are based on assumptions and expectation of the Group at the time

the annual report was prepared. These are again subject to known and unknown opportunities, risks and uncertainties, which are partly outside of the company’s sphere of influ-ence. If the stated factors occur or if it comes to light that the underlying assumptions were not accurate, the actual development of the Rickmers Group can vary positively or negatively from the statements and information within the forecast.

The forecast for the business segments is based on the fol-lowing market assumptions:

•The average EUR/USD exchange rate remains stable for 2014, rising marginally in the ensuing trend years.

•It is assumed that the average bunker price will fall slightly in the forecast year and in subsequent years.

•The assumed charter rates for future charter contracts are based on the charter rate forecast of the shipbroker Harper Petersen & Co., Hamburg.

•Repayments of loans are planned in line with existing contracts. For loans due for repayment in the forecast period 2014, this is planned assuming a lifetime extension with a continuation of present repayment agreements.

•Interest rate expectations of the 3-month LIBOR are based on slightly increasing rates.

For the Maritime Assets segment, the Group is forecasting growth in the number of vessels managed by the segment. This rise will be driven primarily by the joint venture with funds affiliated with Apollo Global Management, LLC.

Maritime Services is assumed to be the provider of techni-cal management for the growing number of vessels ac-quired through the joint venture with funds affiliated with Apollo Global Management, LLC as well as through third parties.

The Rickmers-Linie segment will remain under pressure due to intensive competitive factors negatively influenc-ing rates in the near term.


Annual Report 2013

Revenues and income positionMaritime AssetsIn the Maritime Assets segment, the Rickmers Group is as-suming a slight fall in revenue over the forecast year. This negative trend is due primarily to expiring charter contracts. It is expected that this effect will be partially compensated by the planned expansion of the fleet marked primarily by the joint venture agreement with funds affiliated with Apollo Global Management, LLC and the cooperation with Oaktree Capital Management L.P. At financial year-end date, the contracted charter utilization for 2014 is forecasted with solid 78 percent including Rickmers Group vessels as well as those vessels in the joint venture.

Analogue to the revenue, the expected EBITDA and the net income in 2014 is slightly below the value of the prior year. Given the ongoing crisis in the shipping industry, expir-ing charter contracts might be replaced by new contracts with comparatively low-margin charter rates. The resulting burden cannot be fully compensated on the cost side.

Maritime ServicesThe Maritime Services segment is anticipating a slight increase in revenue in 2014, largely due to the planned expansion of the fleet under management. A significant part of this is attributable to the growth in the fleet under management in Singapore arising from the joint venture with funds affiliated with Apollo Global Management, LLC. The Rickmers Group is aiming to reactivate the Rickmers Marine Agency Paranaque City/Metro Manila, Philippines in order to strengthen the presence and the crewing busi-ness in Asia and to gain direct access to the recruitment of qualified seafarers.

Based on Rickmers Groups’ assumptions, the increase in EBITDA in 2014 is attributable to the forecasted growth in the fleet and the resulting growth in earnings from shipmanage-ment. Furthermore, the business process outsourcing of the administrative crewing, initiated at the end of 2013, leads to saving potentials and standardized administrative processes at Group level. For a service fee, parts of the fleet’s crew-ing activities are being handed over to an external service provider. This is intended to increase competitiveness in respect of flexibility, quality, motivation and price, which should benefit all Rickmers Group vessels both financially and in terms of quality.

In order to manage the steadily expanding fleet in Singapore, additional employees will be hired gradually and the organisational structure will be adjusted in 2014.

The expected growth in net income in 2014 is analogue to the EBITDA largely attributable to the growth in the fleet driven by Singapore. Rickmers-LinieThe Rickmers-Linie segment is initiating measures to im-prove revenues and margin as well as cost cutting to counter the continuing challenging market situation. On the basis of the strengthened sales organisation in America, Asia, the Middle East and Europe, which took place in 2013, the Rickmers-Linie will focus in particular on trades routes with a positive gross margin, and will optimise the westbound “Round-the-World Service”.

Based on slow recovery in average freight rates in 2014 and with the help of a targeted pricing policy, the Rickmers-Linie is striving for a continually improved cargo mix as well as for an optimized utilisation of shipping capacities and therefore enhanced profitability. It is assumed that EBITDA will improve in 2014, primarily because of the aspired cost cutting measures. Energy-efficiency programs initiated in 2011 aiming at reducing bunker consumption are expected to reveal their potential in 2014, too. Rickmers-Linie is planning to decrease bunkers’ consumption further in 2014 especially through Super Slow Steaming by an additional two tonnes per day. It is also intended to cut variable costs related to loading and unloading by 3 percent in 2014, and to reduce port stay through optimized processes in all relevant ports. Further cost reductions are expected through more favour-able charter conditions and the exchange of vessels in the India Service.

Within the two ship joint venture with Maersk Line Limited, volumes and earnings were lower than expected. Therefore, the operational cooperation will be terminated in March 2014 by mutual agreement. Thus in 2014, loss contributions of the joint venture will be considerably lower than in the previous year.


Rickmers Group

The focus on profitable trades, the prudent deployment of vessels and cost cutting, in particular regarding bunker consumption and cargo-related variable costs, will mitigate a significant amount of the negative market impact on the business and therefore positively impact the annual result 2014. FinancingIn focusing on a capital market-oriented corporate structure and given its successful entry to the capital market, the Rickmers Group has succeeded in opening up new oppor-tunities to tap additional sources of funds and so to exploit opportunities in the market. This includes the anticipated consolidation of the shipping industry in view of the un-relenting strained market environment. Additionally the low prices of newbuilds for a generation of extraordinarily energy-efficient and competitive vessels represent attractive new projects for the Group. The Rickmers Group continuously reviews and evaluates other financial channels to guarantee funding and therefore to continue to secure growth.

InvestmentsGiven the current price levels, investments in newbuilds may prove to be attractive in 2014. However, this is dependent on a variety of factors such as the energy efficiency of the vessels, the financial environment and the anticipated developments in the relevant markets, in particular the charter market. Another investment opportunity is to grow the fleet through acquiring existing tonnage. The Rickmers Group plans to pursue this option through the joint venture with funds affiliated with Apollo Global Management, LLC.

Furthermore, after evaluation by the Maritime Technol-ogy department, the existing vessels should be equipped with energy-efficient technology to strengthen their competitiveness.

Investments are envisaged in the ongoing optimisation of IT systems, in reporting and controlling systems and in processes and structures.

5.4 Overall statement from the management regarding the risks, opportunities and forecast report

From the current perspective, after considering all individual risks, there are no risks identifiable that could threaten the going concern of the Rickmers Group for the forecast period.

In the coming financial year it is the aim of the Rickmers Group to generate operating business activities (EBITDA) comparable to the level of the financial year 2013.

Existing long-term charter contracts will continue to repre-sent a strong basis for the aspired development on revenue level. Therefore, growth activities especially in the Maritime Assets and Maritime Services segments will be driven by additional own vessels and third-party vessels in manage-ment. However Rickmers-Linie continues to focus on trades with positive profit contribution and plans further efficiency measures to reduce costs.


81Notes to the consolidated financial statementsAnnual Report 2013

Consolidated financial statements

82 Consolidated income statement 83 Consolidated statement of comprehensive income 84 Consolidated balance sheet 86 Statement of changes in shareholders’ equity 88 Consolidated cashflow statement 90 Notes to the consolidated financial statements179 Auditor’s report

82 Rickmers GroupConsolidated income statement

in € thousand Note 2013 2012

Revenues 7 578,609 647,997

Changes in inventories 8 157 -157

Other operating income 9 33,993 59,333

Cost of materials 10 -272,537 -287,894

Personnel expenses 11 -88,472 -95,511

Amortisation, depreciation and impairment losses for intangible assets and property, plant and equipment 12 -122,634 -115,262

Other operating expenses 13 -56,230 -52,047

Results from investments accounted for using the equity method 14 -5,244 1,106

Other income from investments 15 -4,864 -2,124

Financial result 16

Interest income 2,253 2,712

Interest expenses -83,454 -96,505

Other financial income 33,027 10,940

Other financial expenses -21,365 -59,458

Total -69,539 -142,311

Earnings before tax on income -6,761 13,130

Income tax 17 8,279 -2,426

Group profit or loss 1,518 10,704

Attributable to:

Shareholders of Rickmers Holding GmbH & Cie. KG -16,223 -3,337

Non-controlling interests 17,741 14,041

Consolidated income statement

83Annual Report 2013



Actuarial gains/losses on post-employment benefit obligations 30 3 -190

Share of other comprehensive income in at-equity accounted investments (not reclassifiable) 21 166 0

Items that will not be reclassified subsequently to profit or loss 169 -190

Currency translation differences 29 -24,375 -9,101

Recognised in other comprehensive income -24,375 -9,100

Recognised in profit or loss 0 -1

Cashflow hedges 29, 37.5.4 12,481 5,176

Recognised in other comprehensive income -577 -14,999

Recognised in profit or loss 13,058 20,175

Items that will be reclassified subsequently to profit or loss when specific conditions are met -11,894 -3,925

Other comprehensive income net of tax -11,725 -4,115

Group total comprehensive income -10,207 6,589

Attributable to:

Shareholders of Rickmers Holding GmbH & Cie. KG -24,227 -13,889

Non-controlling interests 14,020 20,478

Consolidated statement of comprehensive income

Consolidated statement of comprehensive income

Rickmers Group84

in € thousand Note 31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

ASSETS

Non-current assets

Intangible assets 18 2,444 2,912 545

Vessels 19 2,242,034 2,438,291 2,613,971

Other property, plant and equipment 20 2,923 3,475 3,373

Investments accounted for using theequity method 21 17,533 12,467 17,399

Other financial assets 22 8,008 14,356 22,232

Trade and other receivables 23 133 175 135

Deferred tax assets 33 2,242 1,918 744

2,275,317 2,473,594 2,658,399

Current assets

Inventories 24 17,275 16,279 17,842

Derivative financial instruments 37 0 91 0

Other financial assets 22 18,251 71,191 52,023

Trade and other receivables 23 32,114 32,900 41,769

Other non-financial assets 25 8,556 8,598 6,570

Current income tax assets 26 1,338 236 0

Cash and cash equivalents 27 144,788 72,064 93,130

222,322 201,359 211,334

Assets held for sale 28 26,695 0 0

Assets 2,524,334 2,674,953 2,869,733

Consolidated balance sheet as at 31 December 2013

Consolidated balance sheet


in € thousand Note 31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

EquITy AND lIAbIlITIES

Equity

Equity attributable to shareholders of Rickmers Holding GmbH & Cie. KG 29 361,464 391,025 416,098

Non-controlling interests 29 207,985 162,649 147,762

569,449 553,674 563,860

Non-current liabilities

Provisions for pensions and similar obligations 30 1,703 1,777 1,550

Other provisions 31 8 74 68

Derivative financial instruments 37 76,932 118,486 78,296

Financial debt 32 1,291,274 1,666,578 1,864,573

Trade and other payables 34 2,183 1,063 1,662

Deferred tax liabilities 33 12,158 10,215 9,702

1,384,258 1,798,193 1,955,851

Current liabilities

Other provisions 31 11,485 4,540 6,636

Derivative financial instruments 37 1,103 5,513 49,520

Financial debt 32 489,383 230,113 210,083

Trade and other payables 34 57,223 57,775 61,213

Non-financial liabilities 35 5,874 7,314 5,664

Current income tax liabilities 36 5,559 17,831 16,906

570,627 323,086 350,022

Equity and liabilities 2,524,334 2,674,953 2,869,733

Consolidated balance sheet

86 Rickmers Group

Accumulated other comprehensive income

in € thousand Subscribed capital Reserves and withdrawals Currency translation differencesCashflow

hedges

Equity attributable to shareholders of

Rickmers Holding GmbH & Cie. KGNon-controlling

interests Equity

Balance at 1 Jan. 2012 6,405 438,479 0 -28,786 416,098 147,762 563,860

Profit or loss 0 -3,337 0 0 -3,337 14,041 10,704

Other comprehensive income 0 -190 -5,983 -4,379 -10,552 6,437 -4,115

Total comprehensive income 0 -3,527 -5,983 -4,379 -13,889 20,478 6,589

Capital increase/decrease 0 0 0 0 0 0 0

Withdrawals/dividend distribution 0 -11,069 0 0 -11,069 -5,570 -16,639

Other changes 0 -124 8 1 -115 -21 -136

Closing balance at 31 Dec. 2012 6,405 423,759 -5,975 -33,164 391,025 162,649 553,674

Profit or loss 0 -16,223 0 0 -16,223 17,741 1,518

Other comprehensive income 0 169 -14,486 6,313 -8,004 -3,721 -11,725

Total comprehensive income 0 -16,054 -14,486 6,313 -24,227 14,020 -10,207

Capital increase/decrease 0 0 0 0 0 40,316 40,316


Changes in ownership interests in subsidiaries that do not result in a loss of control 0 16 0 0 16 -16 0

Other changes 0 0 -1 0 -1 -1,299 -1,300


More details on equity can be found in Section 29.

Statement of changes in shareholders’ equity



Accumulated other comprehensive income

in € thousand Subscribed capital Reserves and withdrawals Currency translation differencesCashflow

hedges

Equity attributable to shareholders of

Rickmers Holding GmbH & Cie. KGNon-controlling

interests Equity

Balance at 1 Jan. 2012 6,405 438,479 0 -28,786 416,098 147,762 563,860

Profit or loss 0 -3,337 0 0 -3,337 14,041 10,704

Other comprehensive income 0 -190 -5,983 -4,379 -10,552 6,437 -4,115

Total comprehensive income 0 -3,527 -5,983 -4,379 -13,889 20,478 6,589

Capital increase/decrease 0 0 0 0 0 0 0


Other changes 0 -124 8 1 -115 -21 -136


Profit or loss 0 -16,223 0 0 -16,223 17,741 1,518

Other comprehensive income 0 169 -14,486 6,313 -8,004 -3,721 -11,725

Total comprehensive income 0 -16,054 -14,486 6,313 -24,227 14,020 -10,207

Capital increase/decrease 0 0 0 0 0 40,316 40,316


Changes in ownership interests in subsidiaries that do not result in a loss of control 0 16 0 0 16 -16 0

Other changes 0 0 -1 0 -1 -1,299 -1,300


More details on equity can be found in Section 29.


88 Rickmers Group


Operating activities


Income tax -8,279 2,426

Depreciation, amortisation, impairment losses and write-ups 129,067 119,150

Net interest 81,200 93,793

Financial result from swaps (held for trading) 20,817 11,506

Gain/loss on sale of non-current assets 14 -1,038

Results from investments accounted for using the equity method 5,244 -1,106

Other non-cash items -37,206 586

Dividends received 3,311 2,537

Changes in provisions for pensions and similar obligations -75 227

Changes in other assets and liabilities 2,446 -4,343

Income tax paid -3,533 -3,064

Cashflow from operating activities 38 194,524 231,378

Investing activities

Purchase of intangible assets -344 -2,557

Purchase of vessels -43,105 -4,384

Purchase of other property, plant and equipment -616 -1,307

Acquisition of subsidiaries and other business units 0 -77

Acquisition of other financial assets -14,156 -334

Proceeds from disposal of intangible assets and property, plant and equipment 78 14,962

Proceeds from disposal of subsidiaries and other business units -2 0

Cash proceeds from disposal of other financial assets 524 6,087

Cash advances and loans made -24,823 -1,114

Cash receipts from advances and loans made 75,467 4,689

Interest received 5,379 1,311

Cashflow from investing activities 38 -1,598 17,276

Consolidated cashflow statement


Annual Report 2013 89


Financing activities

Proceeds from issuing equity instruments and capital increase 41,748 0

Cash payments for transaction costs on equity proceeds -1,433 0

Dividends paid -13,034 -16,639

Proceeds from financial debt 263,263 8,978

Cash payments for transaction costs on debt proceeds -9,810 0

Repayments of financial debt -311,150 -162,598

Interest paid -86,882 -97,762

Cashflow from financing activities 38 -117,298 -268,021

Change in cash and cash equivalents 38 75,628 -19,367

Currency translation effects on cash and cash equivalents -2,904 -1,699

Cash and cash equivalents at beginning of period 72,064 93,130

Cash and cash equivalents at end of period 27 144,788 72,064


90 Notes to the consolidated financial statements Rickmers Group

Notes to the consolidated financial statements

1 General notes

1.1 General

Rickmers Holding GmbH & Cie. KG (head office: Neum-uehlen 19, 22763 Hamburg) was founded in 1985 and is registered with the commercial register ( Handelsregister) kept at the local court (Amtsgericht) of Hamburg under HRA 89790. This is the parent company of the Rickmers Group. The Group is an international provider of services for the maritime industry. The Rickmers Group operates a fleet of 102 vessels and is internationally represented by over 20 branches and by more than 50 sales agencies.

1.2 Principles applied in the IFRS consolidated financial statements

The consolidated financial statements for the year ended 31 December 2013 of the Rickmers Group are the first con-solidated financial statement prepared in accordance with the International Financial Reporting Standards (IFRS) passed and issued by the International Accounting Standards board (IASb) and the interpretations of the Inter national Financial Reporting Standards Interpreta-tions Committee (IFRS IC), as adopted by the European union (Eu). The Rickmers Group‘s consolidated financial statements are prepared in application of the regulations contained in Directive (EC) No. 1606/2002 of the European Parliament and Council dated 19 July 2002 concerning the application of international accounting standards, in con-junction with Article 315a (3) of the German Commercial Code (Handelsgesetzbuch – HGb). In addition, the sup-plementary provisions of commercial law were taken into account and have a discharging effect.

The consolidated financial statements were prepared in euros. unless otherwise indicated, all amounts are given in € thousand.

The consolidated financial statements were prepared in principle on the basis of the recognition of assets and liabilities at amortised cost with the exception of available-for-sale financial assets measured at market value and financial assets and financial liabilities, including derivative financial instruments measured at fair value through profit or loss.

The income statement was prepared using the nature of expense method. As required by IAS 1, balance sheet items are classified as either current or non-current. For the sake of clarity, selected items in the balance sheet and in the income statement have been combined. These are explained in detail in the Notes to the consolidated finan-cial statements.

The preparation of consolidated financial statements in accordance with IFRSs involves the management making estimates and judgements that affect the recognition and measurement of items in the balance sheet and/or income statement and of the disclosure of contingent assets or liabilities (see Note 5).

The Executive board of Rickmers Holding GmbH & Cie. KG prepared the consolidated financial statements as at 24 April 2014. This marks the end of the valuation period.

1.3 Principles regarding the transition to IFRS

1.3.1 Application of IFRS 1

Regulations contained in IFRS 1, First-time Adoption of International Financial Reporting Standards, have been applied. The date of transition to IFRSs is 1 January 2012. All IFRSs that are mandatory for the financial year 2013 have been taken into account retrospectively to the date of transition. All financial figures for the prior year have been calculated on the basis of the same accounting principles.


1.3.2 Mandatory exceptions to retrospective application

Estimates Estimates made under the previous GAAP (German Com-mercial Code – Handelsgesetzbuch HGb) have been retained at their respective dates. There has been no ob-jective evidence that the estimates were in error (IFRS 1.14).

Derecognition of financial assets and financial liabilitiesFinancial assets and liabilities derecognised before the date of transition at 1 January 2012 have been retained as required by IFRS 1 (IFRS 1.b2-b3).

Hedge accountingAt the date of transition, all derivatives were measured at fair value. Furthermore, all deferred losses and gains arising on derivatives that were reported in accordance with previous GAAP have been eliminated through profit or loss. Hedging relationships accounted for under HGb satisfy the requirements of IAS 39 and have been accord-ingly retained in the IFRS statements (IFRS 1.b4-b6).

Non-controlling interestsThe requirements of IFRS 10 relating to the accounting of non-controlling interests have been applied from the date of transition to IFRSs (IFRS 1.b7).

First-time adoption later than subsidiariesGiven that the Rickmers Group became a first-time adaptor later than some of its subsidiaries, in its consolidated financial statements it measures the assets and liabilities of the subsidiaries at the same carrying amounts as in the financial statements of the subsidiary after adjusting for consolidation and for the effects of the business combin-ation in which the entity acquired the subsidiary (IFRS 1.D17).

Joint arrangementsThe Rickmers Group applied the transition provisions of IFRS 11 with the following exceptions. When changing from proportionate consolidation to the equity method, the Rickmers Group tested the investment for impairment at the date of transition in accordance with IAS 36. Any resulting impairment loss is recognised as an adjustment to reserves and withdrawals at the date of transition to IFRSs (IFRS 1.D31).

1.3.3 Optional exemptions

In its transition from HGb to IFRSs, the Rickmers Group has made use of the following options and exceptions provid-ing for by IFRS 1.

Business combinations The Rickmers Group does not apply IFRS 3 business Com-binations retrospectively to business combinations that occurred before the date of transition to IFRSs (IFRS 1.C1-C5).

LeasesThe Rickmers Group applies the transitional provisions of IFRIC 4 on determining whether an arrangement contains a lease at the date of transition. Therefore, the Rickmers Group determined whether an arrangement existing at the date of transition to IFRSs contains a lease on the basis of facts and circumstances existing at that date (IFRS 1.D9).

Cumulative translation differencesThe Rickmers Group did not comply with the require-ments of IAS 21 for cumulative translation differences that existed at the date of transition. using the exemption, the cumulative translation differences for all foreign operations are deemed to be zero at the date of transition. The gain or loss on a subsequent disposal of any foreign operation excludes translation differences that arose before the date of transition. Translation differences arising after the date of transition are included (IFRS 1 D.13).


1.3.4 Reconciliation of HGB to IFRS

1.3.4.1 Reconciliation of consolidated equityThe transition to IFRSs resulted in the following changes to the Rickmers Group’s consolidated equity:

Reconciliation of consolidated equityin € thousand

31 Dec. 2012

1 Jan. 2012

Consolidated equity according to HGB (as reported) 719,512 313,922

Deferment of initial consolidation of Rickmers Maritime, Singapore -564 432,883

Consolidated equity according to HGB (after adjustment) 718,948 746,805

Recognition and measurement of vessels -111,305 -142,196

Recognition and measurement of derivatives -95,391 -85,885

Recognition and measurement of dry-docking costs (component approach) 19,253 24,076

Recognition and measurement of non-derivative financial instruments 9,339 13,053

Tax effects -8,429 -8,610

Reclassification of negative differences arising from equity consolidation 8,063 8,063

Effects from accounting according to the equity method 4,147 5,440

Measurement and reclassification of financial instruments -1,366 -1,184

Revenues recognised for unterminated voyages in liner traffic 912 1,027

Other IFRSs conversion effects 9,503 3,271

Consolidated equity according to IFRSs 553,674 563,860

Changes in consolidated equity largely results from the following:

In the HGb consolidated financial statements for 2012, Rickmers Maritime, Singapore, was consolidated for the first time effective as of 23 April 2012. However, because the Rickmers Group has exercised control over Rickmers Mari-time, Singapore, since its merger with Pacific Holdings In-ternational GmbH & Cie. KG, Hamburg on 1 September 2011, the HGb consolidated equity as at 1 January 2012 would have been € 432,883 thousand higher due to the shift in the date in the first-time consolidation.

Having adjusted the accounting and measurement of the vessels, consolidated equity at 31 December 2012 reduced by € 111,305 thousand (1 Jan. 2012: € -142,196 thousand). This is largely the result of extending the useful life from 22 to 27 years and of implementing IFRSs regulations on impairment testing (IAS 36).

From the date of transition to IFRSs, regulations for hedge accounting according to IAS 39 are to be applied. The remeasurement of derivatives at the date of transi-tion reduces consolidated equity by € 85,885 thousand. At 31 December 2012, consolidated equity was reduced by € 95,391 thousand.

Furthermore, a component approach to the accounting of vessels introduced as part of the transition to IFRSs led to a separate capitalisation and depreciation of dry-docking costs. The introduction of the component approach has led to an increase in consolidated equity (31 Dec. 2012: € 19,253 thousand; 1 Jan. 2012: € 24,076 thousand).

The increase in consolidated equity from accounting for and measuring non-derivative financial instruments largely re-sults from the different methods of handling transaction costs according to IFRSs (31 Dec. 2012: € 9,339 thousand; 1 Jan. 2012: € 13,053 thousand).

Consolidated equity is further reduced by the recogni-tion and measurement of deferred taxes (31 Dec. 2012: € -8,429 thousand; 1 Jan. 2012: € -8,610 thousand).

In contrast, the reclassification of (former) negative dif-ferences in consolidated equity required according to IFRSs increases equity (31 Dec. 2012: € 8,063 thousand; 1 Jan. 2012: € 8,063 thousand). Furthermore, IFRS consoli-dated accounting principles have also been applied to as-sociates accounted for according to the equity method. This has a positive effect on consolidated equity (31 Dec. 2012: € 4,147 thousand; 1 Jan. 2012: € 5,440 thousand). Against this, consolidating investments in limited partnerships in which minority interests are held has reduced consolidat-ed equity. According to IFRSs, the puttable shares held by minority interests are to be recognised as liabilities and measured at fair value (31 Dec. 2012: € -1,366 thousand; 1 Jan. 2012: € -1,184 thousand).


Furthermore, recognising revenues and earnings based on the proportion of work completed has the effect of increas-ing equity for unterminated vessel voyages at the financial year-end date (31 Dec. 2012: € 912 thousand; 1 Jan. 2012: € 1,027 thousand).

1.3.4.2 Reconciliation of consolidated statement of comprehensive income

The consolidated statement of comprehensive income of the Rickmers Group changed as follows:

Reconciliation of consolidated statement of comprehensive incomein € thousand 2012

Group profit according to HGB (as reported) 22,459

Deferment of initial consolidation of Rickmers Maritime, Singapore -6,681

Group profit according to HGB (after adjustment) 15,778

Extension of useful lives of vessels 24,326

Recognition and measurement of derivatives -16,227

Recognition and measurement of dry-docking costs (component approach) -5,497

Reversals of impairments in the carrying amount of vessels 5,726

Impairment losses for vessels -6,333

Accounting recognition of transaction costs -3,573

Changes in the functional currency -1,516

Effects from accounting according to the equity method -1,261

Other conversion effects -719

Group profit according to IFRSs 10,704

Differences from foreign currency translation -9,101

Gains and losses on cashflow hedges 5,176

Actuarial gains or losses -190

Consolidated statement of comprehensive income according to IFRSs 6,589

Changes in consolidated comprehensive income largely result from the following:

The shift in the date of the initial consolidation of Rickmers Maritime, Singapore, described above has meant that Group profit would have been € 6,681 thousand lower than it was according to HGb.

In contrast, extending the useful lives for vessels increased Group profit by € 24,326 thousand.

Accounting effects of the restructuring of derivatives carried out in December 2012 reduced Group profit by € 16,227 thousand.

The application of the component approach to dry-docking costs has reduced Group profit by € 5,497 thousand.

Furthermore, implementing the IFRSs regulations on im-pairment tests (IAS 36), has led to reversals of impairments of € 5,726 thousand and simultaneous impairment losses of € -6,333 thousand.

The reduction in Group profit arising from accounting for and measuring non-derivative financial instruments of € 3,573 thousand follows from the transaction costs recog-nised in the carrying amount of the loan according to IFRSs that are distributed across the term of the loan.

Converting the functional currency at some Group com-panies has changed Group profit by € -1,516 thousand.

Furthermore, IFRS consolidated accounting principles have also been applied to associates accounted for according to the equity method. This has reduced Group profit by € 1,261 thousand.


1.3.4.3 Notes on the adjustment to the consolidated cashflow statement

The transition to IFRS has largely resulted in the following changes in the cashflow statement:

Cashflow statementin € thousand

HGb 31 Dec.

2012

IFRS 31 Dec.

2012 Change

Group profit or loss 22,459 10,704 -11,755

Cashflow from operating activities 111,267 231,378 120,111

Cashflow from investing activities 21,556 17,276 -4,280

Cashflow from financing activities -148,929 -268,021 -119,092

Change in cash and cash equivalents -16,106 -19,367 -3,261

Other changes in cash and cash equivalents 37,760 -1,699 -39,459

Cash and cash equivalents at beginning of period 51,470 93,130 41,660

Cash and cash equivalents at end of period 73,124 72,064 -1,060

Notes to the changes in the Group profit or loss can be found in the reconciliation of the consolidated statement of comprehensive income in Section 1.3.4.2.

Differences in the cashflow from operating activities of € 120,111 thousand are mainly attributable to the shift in the date of initial consolidation of Rickmers Maritime, Singapore, (€ 35,771 thousand) and to changes in the presentation of interest payments. In the 2012 HGb con-solidated financial statements, interest payments were allocated to cashflow from operating activities whereas the IFRSs consolidated financial statements allocates them to cashflow from investing activities (interest received) or to cashflow from financing activities (interest paid) (€ 84,052 thousand).

The cashflow from investing activities changed by € -4,280 thousand. This is due largely to the separate

capitalisation of dry-docking costs for vessels. In the HGb consolidated financial statements, dry-docking costs are expensed immediately and allocated to cashflow from operating activities, whereas IFRSs capitalises and depre-ciates dry-docking costs across useful lives (component approach) and thus allocates these to cashflows from in-vesting activities.

In the cashflow from financing activities there is a change of € -119,092 thousand. This is primarily due to the allo-cation of interest payments to cashflows from financing activities. Moreover, repayments of financial debt at Rickmers Maritime, Singapore, increased by € 19,472 thou-sand due to differences in the date of initial consolidation.

The rise in cash and cash equivalents at the beginning of the financial year also results from the earlier date of initial consolidation of Rickmers Maritime, Singapore, and entails the decrease in other changes in cash and cash equivalents.

Cash and cash equivalents at the end of the period decreased by € 1,060 thousand, because Harper Petersen is no longer proportionally consolidated, but is included in the IFRSs consolidated financial statements accounted for using the equity method.

2 Application of new and revised standards and interpretations

2.1 Overview

These consolidated financial statements were prepared for the first time in accordance with IFRSs. Pursuant to IFRS 1, the standards and interpretations valid as at 31 December 2013 have been applied to the preparation of the IFRS financial statements from the date of transition as at 1 January 2012. In addition, the Rickmers Group has applied some IFRSs ear-lier from 1 January 2012. These can be seen in the following outline.


Standard NoteMandatory for

Eu commencingAccepted by the Eu Commission

Applied prematurely by the Rickmers

Group

IFRS 9 (Phase 1)

New standard on financial instruments Phase: Classification and measurement 1 Jan. 2018 no no

IFRS 9 (Phase 2)

New standard on financial instruments Phase: Impairment loss and provisions for risks 1 Jan. 2018 no no

IFRS 9 (Phase 3)

New standard on financial instruments Phase: General hedge accounting 1 Jan. 2018 no no

IFRS 10 New standard on consolidated financial statements Consolidation and control regulations (replaces IAS 27 and SIC-12) 1 Jan. 2014 yes yes

IFRS 10, IFRS 12, IAS 27

Amendment to IFRS 10, IFRS 12, IAS 27: Investment companies 1 Jan. 2014 yes no

IFRS 10–12 Amendment to IFRS 10, IFRS 11 and IFRS 12: Transition 1 Jan. 2014 yes no

IFRS 11 New standard on joint arrangements Classification and accounting of joint operations and joint ventures 1 Jan. 2014 yes yes

IFRS 12 New standard on the disclosure of interests in other entities 1 Jan. 2014 yes yes

IFRS 14 New standard on regulatory deferral accounts 1 Jan. 2016 no no

IAS 19 (2013) Defined benefit plans: employee contributions (amendment to IAS 19 Employee benefits) 1 July 2014 no no

IAS 27 Amendment subsequent to IFRS 10: Separate financial statements on parent company investments 1 Jan. 2014 yes N/A

IAS 28 Amendment subsequent to IFRSs 10-12: Investments in associates and joint ventures 1 Jan. 2014 yes yes

IAS 32 Amendment to IAS 32: offsetting financial assets and liabilities 1 Jan. 2014 yes yes

IAS 36 Amendment to IAS 36: recoverable amount of non-financial assets 1 Jan. 2014 yes no

IAS 39 Amendment to IAS 39: Novation of derivatives and the continuation of hedge accounting 1 Jan. 2014 yes no

IFRIC 21 New interpretation on levies 1 Jan. 2014 no no

Diverse Annual Improvement Process 2010-2012: Amendments to IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38 1 July 2014 no no

Diverse Annual Improvement Process 2011-2013: Amendment to IFRS 1, IFRS 3, IFRS 13 and IAS 40 1 July 2014 no no

2.2 Notes

2.2.1 Endorsed amendments

The following is a list of the new or amended standards and interpretations endorsed in European law and which the Rickmers Group has not voluntarily applied prematurely.

IAS 36 – Disclosures on the recoverable amount for non-financial assetsThe amended standard published by the IASb contains adjustments to IAS 36 Impairment of Assets, whereby:

• Disclosure guidelines introduced in IAS 36 because of IFRS 13 Fair Value Measurement have been extended, and

• Adjustments have been made to disclosure requirements regarding impairment losses or reversals of impairment losses when the recoverable amount of non-financial assets is based on the fair value less costs to sell.

The amendments lead to an extension of the disclosures in the Notes of the Rickmers Group’s financial statements.

IAS 39 – Novation of over-the-counter derivatives and the continuation of the existing hedging relationshipThis amendment aims at changing recognition and meas-urement, and IFRS 9 Financial Instruments to novate an over-the-counter derivative designated as a hedging


instrument without interrupting the continuation of the existing hedging instrument when the hedging instrument would otherwise remain unchanged and when the nova-tion has become necessary due to statutes or regulations. These amendments are of no relevance to the Rickmers Group.

Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements – Investment companiesThe amendments published in October 2012 fundamen-tally release investment companies from their obligation to consolidate subsidiaries in which they have a control-ling interest in their consolidated financial statements in future. Instead, investments held for investment purposes are measured at fair value and new disclosure obligations are prescribed for investment companies. These amend-ments are of no relevance to the Rickmers Group.

Amendments to IFRS 10, IFRS 11 and IFRS 12: TransitionThe transitional provisions contain simplifications in the first-time adoption of IFRSs 10, 11 and 12. As an example, this limits the disclosure of adjusted comparative data to the comparative period immediate preceding the first-time adoption. These amendments are of no relevance to the Rickmers Group.

2.2.2 Non-endorsed standards, amendments and interpretations

The following lists the new or amended standards and interpretations to be applied that have been published by the IASb but have not been endorsed in European law.

IFRS 9 – Financial Instruments: Phase: Classification and measurement The first phase of IFRS 9 amended the previous guidelines relating to the classification and measurement of financial assets and liabilities.

IFRS 9 only foresees two categories for designating financial assets on their initial recognition: they are either meas-ured at fair value or at amortised cost. Measurement at amortised cost thereby requires scheduled holding of the financial asset until the contractual payment flows are col-lected and that the contractual provisions of the financial asset lead to payment flows at specified dates which solely represent redemption and interest payments on the out-standing repayment sums. Financial instruments which do not satisfy these two conditions should be measured at fair value. The categorisation made at initial recognition can be revised in later periods only if the business model under which the asset is held changes.

With regard to embedded derivatives, the standard con-tains the alleviation that a separation is no longer required for financial basis contracts within the scope of the new standards, and thus the contract is measured as a whole. This also applies to assets subsequently measured at amortised cost. The previous regulations of IAS 39 should continue to be applied in cases in which the basis con-tract is beyond the scope of the standard. The effects of the amendment on the Rickmers Group are currently being explored.

IFRS 9 – Financial Instruments: Phase: Impairment loss and provisions for risksIFRS 9 revises how financial liabilities are accounted for. With the exception of regulations dealing with the financial liabilities voluntarily measured at fair value (the fair-value option) IAS 39 was converted to IFRS 9. When exercising the fair value option, change in the fair value of financial liabilities is recognised by the exposure to the change in the fair value in the statement of comprehen-sive income. If the adjustment in fair value is attribut-able to the Group’s own credit risk, the change has to be recognised in other comprehensive income. The portion of fair value changes not attributable to the entity’s own credit risk is still recognised in the income statement.


A separate presentation of the fair value change can be waived should measurement inconsistencies result. The effects of the amendment on the Rickmers Group are cur-rently being explored.

IFRS 9 – Financial Instruments: Phase: general hedge accountingbesides regulating the classification and change in fair value of financial instruments, project phase 3 of IFRS 9 revises the basis principles of hedge accounting. The pro-ject involves aligning hedge accounting requirements with an entity’s often very complicated risk management strat-egies. In future, it should be possible to apply and present single hedges to groups of several balance sheet items and to separate components of non-financial risks. The effects of the amendment on the Rickmers Group are currently being explored.

IFRS 14 – Regulatory Deferral AccountsIFRS 14 permits an entity to continue to account, with some limitations, for “regulatory deferral account balances” that arise when an entity provides goods or services to cus-tomers at a price or rate that is subject to rate regulation which it has recognised in its previous financial state-ments. Regulatory deferral account balances and their net movement are separately presented in the financial pos-ition, income statement and other comprehensive income using subtotals. In addition, certain disclosures have been prescribed. These amendments will have no effect on the Rickmers Group.

Defined benefit plans: Employee Benefits (proposed amendments to IAS 19)The narrow scope amendment to IAS 19R concerns con-tributions from employees or third parties linked to de-fined benefit plans. The objective of the amendment is to simplify the accounting of benefits that are independent of the period in which employee services were rendered, e.g. employee contributions calculated as a fixed compo-nent of a salary. The amendments were initiated by two queries issued to the IFRS Interpretations Committee that contained recommendations for extending the standard. These amendments will have no effect on the Rickmers Group.

Annual Improvements to IFRSs – 2010-2012 CycleThe amendments refer to IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38. The Eu plans to endorse the amendments in q3 of 2014. These amendments will have no effect on the Rickmers Group.

Annual Improvements to IFRSs – 2011-2013 CycleThe amendments refer to IFRS 1, IFRS 3, IFRS 13 and IAS 40. The Eu plans to endorse the amendments in q3 of 2014. These amendments will have no effect on the Rickmers Group.

IFRIC 21 – LeviesThe Interpretation contains regulations covering the accounting for outflows imposed on entities by public bodies, but does not include levies in the meaning of IAS 12 Income Tax. Applying the interpretation could mean that an entity has a present obligation as a result of a past event, especially when the obligation to pay only arises when certain circumstances are triggered at a certain time. The Eu plans to endorse the interpretation in q2 of 2014. These amendments will have no effect on the Rickmers Group.


3 Group accounting principles

3.1 Subsidiaries

Subsidiaries are all entities over which the Rickmers Group has control. It controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Rickmers Group. They are deconsolidated from the date that control ceases.

When the Group ceases to have control any remaining carrying amount of the parent’s investment in the entity is remeasured to its fair value with any resulting differ-ence recognised in profit or loss. The fair value is the fair value of an associate, joint venture or financial asset at initial recognition. In addition, any amounts recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the equity instruments issued by the Group and the liabilities assumed at the date of the transaction. In addition, the consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each acquisition, the Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the proportionate share of the recognised amounts of acquiree’s identifiable net assets.

The goodwill recorded is the excess of the aggregate of consideration transferred, the amount of any non-control-ling interest in the acquiree and the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree over the net of the acquisition-date amounts of assets acquired and liabilities assumed measured in accordance with IFRS 3. If the total of consideration trans-ferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired, the difference is recog-nised directly in the income statement (bargain purchase).

In subsequent periods, any goodwill is subjected to an impairment test at least once a year following completion of a planning process and if events or circumstances arise that suggest that the goodwill may be impaired. In case of an impairment the carrying amount is written down to the lower recoverable amount.

Intercompany transactions, balances and unrealised gains and losses from transactions between consolidated Rickmers Group subsidiaries are eliminated. Accounting policies of subsidiaries have been changed where neces-sary to ensure consistency with the accounting policies adopted by the Group.

Transactions with non-controlling interest that do not lead to loss of control are treated as transactions with equity investors of the Rickmers Group. For acquisitions of non-controlling interests, the difference between any consider-ation paid and the relevant share acquired of the carrying amount of subsidiaries’ net assets is recognised in equity. Gains and losses arising from the disposal of non-control-ling interest are also recognised in equity.

Investments in subsidiaries that are not included in the consolidated financial statements because they are insig-nificant for the financial position, financial performance and cashflows of the Rickmers Group are classified as financial instruments ‘available-for-sale’. The invest-ments are measured at acquisition cost if no publicly listed market prices exist and their fair value cannot be reliably determined.


3.2 Joint arrangements

Joint arrangements are contractual arrangements in which two or more parties have joint control over a business activity. under IFRS 11, the classification of a joint arrange-ment as a joint operation or joint venture depends upon the contractual rights and duties of the parties to the arrangement.

A joint operator recognises, in relation to its interests, its assets and liabilities including assets and liabilities in-curred jointly, its revenue from the sale of its share of the output arising from the joint operation, its share of the revenue from the sale of the output by the joint oper ation and its expenses including its share of any expenses in-curred jointly.

Interests in joint ventures are recognised as investments in the consolidated financial statements of the Rickmers Group. Shares in joint ventures are initially recognised at cost in accordance with the equity method. Subsequent-ly, gains and losses are recognised in profit or loss and changes in value are recognised in other comprehensive income. When the Group’s share of losses in a joint ven-ture equals or exceeds its interests in the joint ventures, the Group does not recognise further losses, unless it has incurred corresponding obligations or made payments on behalf of the joint ventures.

The Group determines at each reporting date whether there is any objective evidence that the investment in the joint venture is impaired. If this is the case, the Group recog-nises the amount of impairment as the difference between its carrying amount and the recoverable amount in the income statement.

unrealised gains on transactions between the Rickmers Group and its joint ventures are eliminated to the extent of the Rickmers Group’s interest in the joint ventures. unreal-ised losses are also eliminated unless the transaction pro-vides evidence of an impairment of the asset transferred.

3.3 Associates

Associates are all entities over which the Group has signifi-cant influence but not control, generally accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for using the equity method. under the equity method, the investment is initially recognised at cost, and the Group’s investment in associates includes goodwill identified on acquisition (after accounting for accumulated impairment losses).

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other com-prehensive income is reclassified to profit or loss.

The Group’s share of profits or losses of associates is recog-nised in the income statement from the date of acquisition. Changes in reserves are recognised proportionally in other comprehensive income. The cumulative post-acquisition changes in equity are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obliga-tions or made payments on behalf of the associate.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calcu-lates the amount of impairment as the difference between the recoverable amount of the associate and its carrying amount and recognises the amount as ‘Results from in-vestments accounted for using the equity method’ in the income statement.

unrealised gains on transactions between the Rickmers Group and its associates are eliminated to the extent of the Rickmers Group’s interest in the associate. unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.


3.4 Other investments

Other investments are classified as available-for-sale financial instruments and accordingly managed by the Group’s risk management. The investments are measured at acquisition cost if no publicly listed market prices exist and the fair value cannot be reliably determined.

3.5 Foreign currency translation

3.5.1 Functional and reporting currency

Items included in the financial statements of each of the Rickmers Group’s entities are measured using the respect-ive functional currency. Functional currencies include EuR, uSD, SGD, JPy, CNy and KRW. These are the currencies of the primary economic environment in which the entity operates.

The functional currency of the parent company of the Rickmers Group is EuR. The consolidated financial state-ments are presented in EuR.

3.5.2 Transactions and balances

Foreign currency transactions are translated into the func-tional currency using the exchange rates prevailing at the dates of the transaction or valuation date at which items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying

cashflow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to financial debt and cash and cash equivalents are presented in the income statement under exchange rate gains in other op-erating income or as exchange rate losses in other operat-ing expenses.

Changes in the fair value of monetary securities denom-inated in foreign currency classified as available-for-sale are distinguished between translation differences result-ing from changes in the amortised cost of the security which are recognised in profit or loss and other changes in the carrying amount of the security which are recognised in other comprehensive income.

Translation differences on non-monetary assets and liabil-ities such as equity instruments held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss. On the other hand, translation differences on non-monetary assets and liabilities, such as equity instruments classified as available-for-sale, are included in reserves and withdrawals.

3.5.3 Group companies and exchange rates

The results and balance sheet items of all Group entities that have a functional currency other than the euro are translated into euros as follows:

• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that bal-ance sheet,

• income and expenses are translated at average exchange rates and

• all resulting exchange differences are recognised in other comprehensive income.


The table below shows how the relevant exchange rates for the Rickmers Group have developed against the euro over the prior year.

Country CurrencyClosing rate

31 Dec. 2013Closing rate

31 Dec. 2012Closing rate 1 Jan. 2012

Average rate 2013

Average rate 2012

China CNy 8.3445 8.2243 8.1632 8.1651 8.1118

united Kingdom GbP 0.8318 0.8125 0.8356 0.8492 0.8112

Japan JPy 145.0150 114.2365 99.8005 129.7143 102.6945

uSA uSD 1.3778 1.3197 1.2959 1.3282 1.2859

Singapore SGD 1.7393 1.6123 1.6808 1.6619 1.6062

South Korea KRW 1454.5800 1404.0600 1504.02 1453.9168 1448.1949

4 Summary of accounting policies

4.1 General

The principal accounting and valuation methods applied in preparing the Rickmers Group consolidated financial statements are set out below. The methods described have been consistently applied to the reporting periods pre-sented, unless otherwise stated.

4.2 Intangible assets

Intangible assets acquired for consideration are measured on initial recognition at acquisition cost including inci-dental acquisition costs, less any price reductions or trade discounts. Intangible assets acquired in a business com-bination are initially recognised pursuant to IFRS 3 at their fair value at the time of acquisition.

Intangible assets with finite useful lives are amortised by the straight-line method over the estimated useful life. Furthermore, they are tested for possible impairment, in-sofar as there are any indications that the intangible asset may be impaired.

Prepayments and internally generated intangible assets under development are not systematically amortised until completion. Intangible assets with indefinite useful lives (e.g. goodwill acquired in a business combination) are like-wise not systematically amortised but are subjected to an impairment test at least once a year. Furthermore, tests are undertaken insofar as events have occurred that indicate a possible impairment of intangible assets. Detailed informa-tion on impairment testing is provided in Section 4.5.

Acquired software licences are recognised on the basis of the costs incurred for their acquisition as well as for the preparation of the software for its intended use. The costs are amortised over their useful life of one to five years.

The useful lives and amortisation periods are reviewed an-nually and if necessary prospectively adjusted to reflect altered expectations.

4.3 Vessels

Vessels are recognised at acquisition or production cost. Acquisition or production costs comprise expenses directly attributable to the acquisition of the vessels. Acquisition costs include all payments that are necessary to acquire the vessels and bring them to operational status. Production


costs are calculated on the basis of direct costs and directly attributable overheads as well as borrowing costs (see de-tailed information given in Section 4.6).

For subsequent measurement, acquisition or production costs are reduced by systematic depreciation using the straight-line method. Depreciation is pro rata temporis in the year of acquisition. The amount of scheduled depre-ciation is affected by the recoverable residual value at the end of the useful life of the vessels. The residual value of vessels is calculated on the basis of their scrap value.

Furthermore, tests of a possible impairment are made insofar as any events or indications are present that in-dicate a possible impairment within the framework of an impairment test of the vessels. Detailed information on impairment testing is provided in Section 4.5.

Subsequent acquisition or production costs of vessels are only recognised as a component of the acquisition or pro-duction costs of a vessel or – if relevant – as a separate asset when it is probable that future economic benefits will flow to the Group and the costs of the asset can be measured reliably. Major components of the vessels are thus recognised and depreciated individually (component approach). This relates primarily to dry-docking costs.

The carrying amount of those components that have been replaced is derecognised. The expenses of repairs and maintenance which do not represent material replace-ment investment (day-to-day servicing) are recognised in the income statement in the financial year in which they are incurred.

The following useful lives are used for vessels and dry-docking costs by the Rickmers Group:

• Vessels: 27 years• Dry-docking costs: 5 to 7.5 years

Prepayments and vessels under construction are not sys-tematically depreciated until completion.

Gains and losses on the disposal of vessels are calculated as the difference between the disposal proceeds and the carrying amounts of the vessels, and are recognised in the income statement under other operating income and other operating expenses, respectively.

4.4 Other property, plant and equipment

Other property, plant and equipment is likewise recog-nised at its acquisition or production cost. Acquisition or production costs comprise the expenses directly attribut-able to the acquisition.

For subsequent measurement, acquisition or production costs are reduced by systematic depreciation using the straight-line method. Depreciation is pro rata temporis in the year of acquisition. The amount of scheduled depre-ciation is affected by the recoverable residual value at the end of the useful life of an asset.

Furthermore, tests of a possible impairment are made in-sofar as any events or indications are present that indi-cate a possible impairment within the framework of an impairment test of other property, plant and equipment. Detailed information on impairment testing is provided in Section 4.5.

Subsequent acquisition or production costs are only rec-ognised as a component of the acquisition or production costs of an asset or – if relevant – as a separate asset when it is probable that future economic benefits will flow to the Group and the costs of the asset can be measured reliably.

The following useful lives are used for other property, plant and equipment by the Rickmers Group:

• Containers: 10 years• Operating and office equipment: 1 to 23 years

Prepayments and other property, plant and equipment under construction are not systematically depreciated until completion.


Gains and losses on the disposal of other property, plant and equipment are calculated as the difference between the disposal proceeds and the carrying amounts of the other property, plant and equipment, and are recognised in the income statement under other operating income and other operating expenses, respectively.

4.5 Impairment testing of non-financial assets

Intangible assets with finite useful lives, vessels and other property, plant and equipment are regularly tested for impairment if relevant events or changes in circum-stances indicate that the carrying amount may no longer be recoverable. For this test, the recoverable amount of the respective asset is compared with its carrying amount.

The recoverable amount of an asset is defined as the higher of fair value less the costs of disposal, and the value in use. The fair value represents a market-based measure-ment and corresponds to the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. In contrast, the val-ue in use corresponds to the present value of the future cashflows expected from the operational use of the asset. If the carrying amount of the asset exceeds the recoverable amount an impairment loss amounting to the excess of the carrying amount over the recoverable amount is recognised.

Assets with indefinite useful lives, such as intangible assets not yet ready for use, are not systematically amortised/depreciated but are tested for impairment annually and, if necessary, written down to the recoverable amount.

The impairment test is in principle carried out on the basis of the individual asset. Insofar as no recoverable amount can be calculated at this level, assets are aggregated at the lowest level for which cashflows can be separately identi-fied (cash generating unit, CGu). Detailed information on impairment testing for vessels can be found in Section 5.2.

Non-financial assets for which an impairment has been recognised in the past are likewise examined at each bal-ance sheet date as to whether any reversal of impairment is required. A reversal of impairment may result from a higher recoverable amount compared to the previously impaired asset or corresponding CGu and may not exceed the amort-ised acquisition cost.

4.6 Borrowing costs

borrowing costs which can be directly attributed to the ac-quisition, construction or production of a qualifying asset are recognised as a component of the acquisition or pro-duction costs of that asset until all work that is needed to prepare the asset for its intended use or sale is essentially completed. A qualifying asset is an asset that necessarily takes a substantial period of time to become ready for its intended use or for sale. During the construction phase, vessels fulfil the criteria for a qualifying asset. Interest expenses and other costs that the Rickmers Group incurs in connection with the borrowing of funds for the con-struction of a vessel are capitalised. Other borrowing costs are recognised as an expense in the period in which they occur.

4.7 Financial instruments

4.7.1 Financial assets

ClassificationRickmers Group divides financial assets into the following categories:

a) financial assets measured at fair value through profit or loss,

b) loans and receivables and c) financial assets available-for-sale.

The classification depends on the individual purpose for which the financial assets were acquired. Management determines the classification of financial assets on initial recognition.


Assets measured at fair value through profit or loss are financial assets which are held for trading purposes. A financial asset is designated to this category if it was, in principle, acquired with the purpose of selling it in the short term. Derivatives likewise belong to this category unless they qualify as hedges under IAS 39. Assets in this category are reported as current assets if their sale is expected within twelve months. All other assets are clas-sified as non-current.

loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They classify as current assets un-less they fall not due more than twelve months after the balance sheet date. Otherwise they are reported as non-current assets.

Financial assets available-for-sale are non-derivative financial assets which have either been designated to this category or cannot be designated to any other of the cat-egories presented. They are classified as non-current assets unless management intends not to sell them within twelve months of the balance sheet date or the asset falls not due during this period.

Recognition and measurementRegular purchases and sales of financial assets are recog-nised as at the trade date, the day on which the Rickmers Group undertakes to buy or sell the asset. Financial assets not measured at fair value through profit or loss are ini-tially recognised at their fair value plus transaction costs. Financial assets that do belong to this category are initially recognised at their fair value; the attendant transaction costs are recognised in profit or loss. Financial assets are derecognised when the rights to receive cashflows arising from the financial assets have expired or been transferred and the Rickmers Group has transferred substantially all the risks and rewards incident to ownership.

Financial assets available-for-sale and assets at fair value through profit or loss are measured at their fair values subsequently to their initial recognition.

loans and receivables are recognised at amortised ac-quisition cost using the effective interest method, less impairments.

Gains or losses on financial assets measured at fair value through profit or loss are reported in the income state-ment under other operating result (currency derivatives) or in the financial result (interest derivatives) in the period in which they arise. Dividend income from financial as-sets available-for-sale is recognised in profit or loss under other income from investments when the Rickmers Group’s legal entitlement arises.

Impairment of financial instrumentsAssets carried at amortised costAn assessment is made at each balance sheet date as to whether there is objective evidence of the impairment of a financial asset or a group of financial assets. A finan-cial asset or a group of financial assets is impaired only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recogni-tion of the asset, and an impact on the estimated future cashflows of the financial asset or group of financial assets can be reliably estimated.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated fu-ture cashflows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the income statement. If a loan, a receivable or a held-to-maturity financial investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.


If, in a subsequent period, the amount of the impairment loss decreases and the decrease results from circumstances arising after the initial recognition of the impairment, the reversal of the previously recognised impairment loss is recognised in the income statement.

Assets classified as available-for-saleAn assessment is made as at each balance sheet date as to whether there is objective evidence of the impairment of a financial asset or a group of financial assets. In the case of debt instruments, the criteria referred to in Section 4.7.1.are used as a basis. In the case of equity instruments classified as financial assets available-for-sale, a signifi-cant or prolonged decline in the fair value of these equity instruments below their acquisition cost is regarded as an indication that the equity instruments are impaired. If any such evidence exists for available-for-sale assets, the cu-mulative loss – measured as the difference between the acquisition cost and the current fair value, less any impair-ment loss on that financial asset previously recognised in profit or loss – is derecognised from equity and recognised in the income statement. Impairment losses on equity instruments once recognised in the income statement are not reversed through profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and this increase results from circumstances that occurred after the initial recognition of the impairment loss, the impairment loss is reversed through the income statement.

4.7.2 Financial liabilities

Non-derivative financial liabilities are recognised initially at fair value less directly attributable transaction costs.

On initial recognition, financial liabilities are classified as at amortised cost as the Rickmers Group does not make use of the option to designate non-derivative financial liabilities as measured at fair value (fair value option) through profit or loss. On the subsequent measurement of non-derivative financial liabilities, the amortised costs are recognised using the effective interest method.

liabilities in foreign currencies are translated at the clos-ing rate.

liabilities are classified as short-term liabilities if the pay-ment obligation is due within one year. Otherwise they are recognised as non-current liabilities.

4.7.3 Offsetting financial instruments

Financial assets and liabilities are offset and reported in the balance sheet as a net amount only if there is a legal entitlement to do so and there is an intention to effect settlement on a net basis or to settle the attendant liability at the same time as the realisation of the asset concerned.

4.7.4 Hedge accounting

The Rickmers Group makes use of a variety of derivative financial instruments to manage its interest and exchange rate risks. These essentially comprise interest rate swaps, forward exchange contracts and FX options.

Derivative financial instruments are measured initially at their fair value on the day the contract is concluded. Subse-quent measurement is likewise at the fair value applicable as at the balance sheet date concerned. The gain or loss resulting from the measurement is immediately recognised in profit or loss, unless the derivative is designated as a hedging instrument within the framework of a hedge rela-tionship (hedge accounting) and is effective.

The Rickmers Group applied hedge accounting in the finan-cial years 2012 and 2013.

The Rickmers Group designates certain derivative finan-cial instruments as hedging instruments against the risk of fluctuating cashflows (cashflow hedge) which are associ-ated with a recognised asset or liability or a highly probable forecast future transaction. If hedge accounting is applied, on conclusion of the transaction, the Group documents the hedging relationship between the hedging instrument and the underlying transaction, the Group’s risk management objective, and also the underlying strategy for undertak-ing hedging transactions. Furthermore, at the commence-ment of the hedging relationship and quarterly thereafter, estimates document whether the derivatives employed in the hedging relationship effectively offset changes in the cashflows of the underlying transaction attributable to the hedged risk.


The full fair value of the derivative financial instruments designated as hedging instruments is reported as a non-current asset or non-current liability if the remaining term of the hedged underlying transaction exceeds twelve months after balance sheet date and as a current asset or liability if the remaining term is shorter.

The effective portion of changes in the fair value of de-rivatives which are intended to hedge cashflow and can be qualified as a cashflow hedge is recognised in other comprehensive income. On the other hand, the ineffective portion is recognised immediately in the income statement under other financial income or expenses.

Amounts accumulated in equity are reclassified to the in-come statement as an income or expense in the period in which the underlying transaction hedged affects profit or loss. The gain or loss on the effective hedging of variable-interest loans with interest rate swaps is recognised in the income statement under interest income or expenses.

If a hedging relationship expires (e.g. by selling the hedge instrument or the hedge accounting criteria are no longer met), the gain or loss previously accumulated in equity is only recognised in the income statement when the ori-ginally hedged underlying transaction affects profit or loss.

4.8 Accounting for leases

4.8.1 Accounting for leases as lessee

leases in which a significant portion of the risks and re-wards of ownership are retained by the lessor are clas-sified as operating leases from the lessee’s perspective. Payments made under operating leases (net of any incen-tives received from the lessor) are charged to the income statement on a straight-line basis over the period of the

lease. The Rickmers Group is the lessee in operating lease agreements relating to vessels and properties. The leased assets are attributed – from an economic point of view – to the lessor.

4.8.2 Accounting for leases as lessor

leases in which a significant portion of the risks and re-wards of ownership are retained by the Rickmers Group are classified as operating leases from the lessor’s perspective. Payments received under operating leases are recognised in the income statement on a straight-line basis over the period of the lease. The Rickmers Group itself is lessor in the context of vessel chartering. This is in connection with operating leases. The leased assets are attributed – from an economic point of view – to the Rickmers Group.

4.9 Inventories

Inventories are recognised at cost plus any incidental costs on the basis of the average cost method or the first-in, first-out (FIFO) method.

Inventories are measured at each closing date at the lower of cost and net realisable value.

4.10 Cash and cash equivalents

Cash and cash equivalents include cash balances, bank deposits and other current highly liquid financial assets with an original term of at most three months. Current account overdrafts are reported under current financial debt as liabilities to banks.


4.11 Assets held for sale

Non-current assets held for sale are classified as held for sale when their carrying amount is to be recovered prin-cipally through a sale transaction and a sale is consid-ered highly probable. They are recognised at the lower of carrying amount or fair value less costs to sell. Necessary impairments are recognised as an expense in the income statement.

4.12 Equity

The components of equity are accounted for in accordance with the provisions of IAS 32. On initial recognition, finan-cial instruments must be classified as a financial liability, as a financial asset or as equity in accordance with the eco-nomic substance of contracts and the definitions in IAS 32.

The capital contributions of the unlimited and limited partners of Rickmers Holding GmbH & Cie. KG (puttable instruments) are classified as equity, since all the require-ments of IAS 32 are fulfilled:

• The instrument entitles the holder to a pro rata share in the entity’s net assets in the event of the entity’s liquidation.

• The instrument is in the class of instruments that is sub-ordinate to all other classes of instruments.

• All financial instruments in the class of instruments that are subordinate to all other classes of instruments have identical features.

• Apart from the contractual obligation for the issuer to repurchase or redeem the instrument for cash or another financial asset, the instrument does not include any con-tractual obligation to deliver cash or another financial asset to another entity, or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity, and it is not a contract that will or may be settled in the entity’s own equity instruments as defined in IAS 32.

• The total expected cashflows attributable to the instru-ment over the life of the instrument are based substan-tially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recog-nised and unrecognised net assets of the entity over the useful life of the instrument.

The other comprehensive income recognised in equity includes currency translation differences, unrealised gains and losses on remeasuring available-for-sale financial assets and financial derivatives used as cashflow hedges which are accounted for without affecting profit or loss pursuant to IAS 39. Furthermore, changes in the equity of companies accounted for by using the equity method and also actuarial gains and losses on defined benefit obliga-tions pension plans are recognised under other compre-hensive income.

4.13 Pension provisions

The Rickmers Group operates both defined benefit and defined contribution pension plans.

A defined contribution plan is a pension plan under which the Rickmers Group pays fixed contributions to a company (fund) which is not a member of the Group. The Rickmers Group has no legal or constructive obligation to make further contributions if the fund does not hold sufficient assets to pay the employees’ pensions entitlements arising from the current and preceding financial years.

The provisions for pensions in the Rickmers Group are based on a defined benefits pension plan. Typically, defined benefit plans define an amount of pension bene-fit that an employee will receive on retirement, usually dependent on one or more factors (such as age, years of service and salary).

The provision recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation (DbO) at the end of the report-ing period less the fair value of plan assets. Pursuant to IAS 19 (revised 2011) the DbO is calculated by an independent actuary using the projected unit credit method.


Account is taken of known pension obligations and vested pension rights as at balance sheet date. The present value of the DbO is determined by discounting the estimated fu-ture cash outflows using interest rates of high-quality cor-porate bonds. Such corporate bonds are denominated in the currency in which the benefits will be paid, and have terms to maturity corresponding to the terms of the pen-sion obligations. The present values of the pension obliga-tions are calculated using K. Heubeck’s “2005 G guideline (mortality) tables” as the bases of calculation.

The interest component included in the pension ex-pense is reported under financial result. Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised in equity and in other comprehensive income in the period in which they arise. They are reported in the latter in the area of the non-reclassifiable items. In the equity they are recognised under reserves and withdrawals.

For defined contribution plans (DCP), the Rickmers Group pays contributions to publicly or privately administered pension insurance plans on a statutory, contractual or vol-untary basis. The Rickmers Group has no further payment obligations beyond the payment of the contributions. The contributions are recognised under personnel expenses when they are due.

4.14 Other provisions

All other provisions are recognised in accordance with IAS 37, provided the Rickmers Group has a present legal or constructive obligation as a result of a past event, when utilisation of these provisions is more likely than not and the amount can be estimated reliably. The estimate of the settlement amount takes future cost increases into account.

Provisions are recognised at their settlement amount and are not netted with positive earnings contributions.

Where there are a number of similar obligations, the likeli-hood of recourse is estimated on the basis of the portfolio of these obligations.

long-term provisions are discounted if the interest effect is material. The discount rate takes account of the current market situation and, if applicable, the specific risks of the liability. The increase in a previously discounted provision due to passage of time is recognised as an interest expense.

4.15 Current and deferred tax

The income tax expense for the period is the total of current and deferred tax. Income tax is recognised in the income statement, unless it relates to items recognised directly in equity or in other comprehensive income. In this case, the tax is likewise recognised in equity or in other comprehen-sive income.

The current income tax charge comprises the actual tax claims and liabilities for the current and earlier periods. It is measured as the amount expected in refund from the tax authority or as a payment to the tax authority.

Deferred tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the IFRS financial statements. The measurement of deferred tax takes account of tax rates and tax laws that apply or have been enacted by the bal-ance sheet date and that are expected to apply when the deferred tax is realised. Deferred tax assets arising from temporary differences and loss carryforwards are recog-nised only to the extent that it is probable that a future taxable profit will be available against which the temporary difference or the loss carryforward can be charged. When deferred tax assets are recognised, they are tested annually for impairment.

Deferred tax liabilities arising from temporary differences in connection with investments in subsidiaries and as-sociates are recognised, unless the timing of the reversal of the temporary differences cannot be determined by the Rickmers Group and it is probable that these will not be reversed in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off the recognised amounts and when the deferred taxes assets and liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.


4.16 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. It is recognised net of value added tax and sales deductions. Generally, revenue is recognised after the goods or services have been provided. Revenue is recognised when the amount of revenue can be reliably measured and when it is sufficiently probable that future economic benefits will accrue to the entity.

Revenue from unterminated vessel voyages is recognised as revenue from the rendering of services pursuant to IAS 18.20 et seq. proportionately to the progress of the voyage at closing date. The progress of the voyage is de-termined by the ratio of the expenses incurred up to the closing date compared to the anticipated total expenses.

lease income from operating leases (charter of vessels) is recognised by the straight-line method over the lease period.

Interest income is recognised using the effective interest method. Section 4.7.4 contains details of the recognition of gains and losses on financial instruments employed in hedging relationships.

Dividend income is recognised when the right to receive payment is established.

5 Management estimates and assumptions

5.1 General

The preparation of consolidated financial statements in conformity with IFRSs requires the use of accounting esti-mates and assumptions. These include complex and sub-jective assessments and the use of assumptions which by their nature are subject to uncertainty and change.

All these estimates and assumptions are continually being evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Rickmers Group makes estimates and assumptions concerning the future. by their nature, resulting estimates will not correspond to subsequent actual circumstances in all cases. The estimates and assumptions that may bear a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are examined below.

5.2 Impairment of vessels

The examination of the intrinsic value of vessels calls for assumptions and estimates of future cashflows, anticipated growth rates, currency rates and discount rates. All mate-rial parameters are thus subject to the discretion of the management of the Rickmers Group with regard to future development, in particular to that of the global economy. like all forecasts, they are afflicted with uncertainty. The assumptions made in this respect may be subject to chang-es that could lead to impairment losses in future periods. This includes determining uniform useful lives within the Group that are based on management’s estimates. Conse-quently, the Group annually examines whether there are indications of an impairment, in accordance with the ac-counting and valuation methods presented in Section 4.3.

At each closing date, the Rickmers Group assesses whether events have occurred which indicate a possible impairment of the vessels. Should this be so, the Rickmers Group makes an estimate of the recoverable amount for the vessels. Each vessel is thus considered to be a cash-generating unit.

The recoverable amount for a vessel corresponds to the higher of fair value less costs to sell and its value in use. If the carrying amount of the vessel is higher than its recov-erable amount, an impairment loss is recognised down to the recoverable amount. The Rickmers Group determines the recoverable amount of vessels on the basis of an estimate of the vessel’s long-term earnings potential, as no reliable fair value can be calculated from historic trans-actions, owing to the present market situation (continuing modest trading activities) and also a market characterised by distress sales.


The technical basis to determine the value in use is the discounted cashflow (DCF) method. Accordingly, the value of a vessel is based on future expected cashflows, dis-counted over the remaining useful life of the vessel. The detailed internal forecast for each vessel, which is the basis of the DCF method, requires assumptions and estimates to be made with regard to input parameters. The following parameters requiring estimates have a particular material effect on the future cashflows: (1) future obtainable charter rates, (2) vessel operating costs and (3) the pre-tax weighted average cost of capital

(WACC) with which the future cashflows are dis-counted back to the valuation date.

The future charter rates obtainable relate, on the one hand, to receipts from actual contracted charter rates, and on the other hand, to estimates concerning future char-ter market rates. The latter bases on 10-years charter rate averages differentiated by vessel type and loading capac-ity. Information sources used are e.g. Clarkson Research Services or Drewry Shipping amongst others. Operating ex-penditures are measured on the basis of the current cost structure per vessel type and the residual value (expected scrap value) is set to 360 uSD per ton of steel covering ex-pected scrapping costs. Future charter market rates as well as operating expenditures are adjusted for an expected inflation of 2 percent.

The weighted average cost of capital was determined tak-ing into account the vessel type and the remaining use-ful life of the vessel. Different assumptions with regard to cashflows can have a material effect on the value in use. The individual estimated variables in the model were sub-ject to a sensitivity analysis. More detailed information on this can be found in Section 19.

5.3 Income tax

The Rickmers Group is under a duty to pay income tax in a large number of tax jurisdictions. For this reason, material

assumptions are needed to calculate international tax pro-visions. There are many business transactions and calcula-tions for which the final tax burden cannot be determined conclusively. The Group measures the level of the provi-sions for anticipated tax audits on the basis of estimates of whether, and at what level, additional income tax will fall due. Discrepancies between the final tax burden on these business transactions and that initially assumed will have an effect on current and deferred tax in the period in which the tax is finally determined.

Deferred tax assets are recognised only when it is probable that sufficient taxable income will be available in future to offset them. This takes account of planned operating earnings, estimates of the possibility for reversing tempo-rary tax differences and the implementation of various tax strategies by the management of the Rickmers Group. If the Rickmers Group management assumes that deferred tax assets cannot be, or can only partially, realised, that part is not be recognised.

5.4 Fair value of financial instruments

The fair value of financial instruments not traded on an active market (e.g. over-the-counter derivatives) is calcu-lated using suitable measurement techniques, in particu-lar the DCF method. This also applies to determining the fair value of numerous available-for-sale financial assets that are not traded in active markets. The measurement parameters used (e.g. interest rates) are based to a large extent on market terms observable at the closing date.

The individual parameters which flowed into the measure-ment of the financial instruments were subject to a sen-sitivity analysis. More detailed information on this can be found in Section 37.

5.5 Estimates in connection with receivables

Impairments on doubtful accounts are recognised on the basis of risk factors such as a customer’s financial diffi-culties or unfavourable changes in the economic situation while observing the maturity structure of the receivables.


Consequently, the impairments on doubtful accounts largely comprise estimates and assessments of individual receivables and groups of receivables based on the credit-worthiness of the customer, current economic trends and an analysis of maturity structures and historical receivable defaults. More detailed explanations may be found in sec-tion 23, 37.5.5 and 37.5.6.

5.6 Revenue recognition

Revenue from vessel voyages that straddle the closing date is recognised as revenue from the rendering of services pursuant to IAS 18.20 et seq. in accordance with pro-gress of the vessels’ voyage. The progress of the voyage is determined by the ratio of the expenses incurred up to the closing date compared to the anticipated total expenses. Discretionary decisions relate in particular to future rev-enues and costs.

5.7 Other provisions

by their nature, other provisions are subject to significant uncertainties with regard to the amount of the obligations or the time of their occurrence. To some extent, assump-tions have to be made on the basis of figures drawn from past experience with regard to the amount, timing and

probability of the obligation or future developments. These may be subject to uncertainties, as is the case in particular with long-term provisions.

The Rickmers Group recognises provisions for impend-ing losses on onerous contracts if a loss is likely and its amount can be reliably determined. Owing to the uncer-tainties connected with this assessment, the actual losses may possibly differ from the original estimates. In the case of provisions for guarantee and liability risks, uncertainty exists in particular in estimating the future claims. A more detailed explanation can be found in Section 31.

Estimates and underlying assumptions are reviewed con-tinually. Adjustments to the estimates are fundamentally taken into account in profit or loss in the period of the change and in future periods.

6 Group of consolidated companies

6.1 Changes in the group of consolidation

The group of consolidated companies comprises a total of 113 companies as well as Rickmers Holding GmbH & Cie. KG effective 31 December 2013.

Fully consolidated Joint ventures Associates Total

German International German International German International

1 Jan. 2012 28 54 1 0 2 8 93

Additions 2 19 0 0 0 1 22

Disposals 0 1 0 0 0 4 5

31 Dec. 2012 30 72 1 0 2 5 110

Additions 0 4 0 1 0 0 5

Disposals 1 0 0 0 0 1 2

31 Dec. 2013 29 76 1 1 2 4 113

In 2013, Altona Maritime Ltd., Douglas, Isle of Man, Rickmers Reederei (Singapore) Pte. Ltd., Singapore, Rickmers Asia Pte. Ltd., Singapore, and Rickmers-Linie (Singapore) Pte. Ltd., Singapore, were established and fully consolidated as subsidiaries for the first time. Rickmers Holding GmbH & Cie. KG holds 100 percent of the shares in each of these companies.


The disposals in 2013 concern Rickmers 3. Terminal Beteili-gungs GmbH, Hamburg, and Rickmers Marine Agency Lanka (Pvt.) Ltd., Colombo, Sri lanka, which were liquidated and deconsolidated in 2013. In addition, A.R. Maritime Investments Pte. Ltd, Singapore, was included in the consolidated financial statements of the Rickmers Group for the first time in 2013 as a joint ven-ture by using the equity method. Rickmers Holding GmbH & Cie. KG indirectly holds 10 percent of the shares in A.R. Maritime Investments Pte. Ltd., Singapore.

A complete list of subsidiaries, joint ventures and associ-ates of the Rickmers Group is provided in Section 46.

6.2 Consolidated subsidiaries with material non-controlling interests

The table below lists consolidated subsidiaries of the Rickmers Group with material non-controlling interests as at 31 December 2013:

Name and location of the subsidiary

Share held by the Rickmers Group, in %

Share held by non-controlling interests, in %

Rickmers Maritime, Singapore 33.1 66.9

Rickmers Maritime, Singapore, is a publicly quoted Singa-pore business trust. As sponsor and trustee manager, the Rickmers Group holds 33.1 percent of the shares in Rickmers Maritime, Singapore. Given the statutory regulations (in particular the Singapore business Trust Act), Rickmers Mari-time, Singapore, is seen as a subsidiary of the Rickmers Group. The conditions of full consolidation have largely been satisfied by the rights afforded the trustee's man-agers to appoint and dismiss the management body.

The gain and loss attributable to minority interests in 2013 amounted to € 17,741 thousand, of which € 16,197 t housand is attributable to Rickmers Maritime, Singapore. The total of non-controlling interest as at 31 December 2013 amounts to € 207,985 thousand, of which € 207,102 th ousand is attributable to Rickmers Maritime, Singapore. The non-controlling interest in relation to other shareholders is not significant.

The table below summarises financial information ( prior to inter-company elimination) for Rickmers Maritime, Singapore.

Summarised balance sheet

in € thousand 31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

Current assets 46,966 45,716 45,777

Current liabilities 39,010 63,369 50,633

Total current net assets 7,956 -17,653 -4,856

Non-current assets 636,119 696,561 738,020

Non-current liabilities 333,794 436,730 513,192

Total non-current net assets 302,325 -259,831 224,828

Net assets 310,281 242,178 219,971

Summarised statement of comprehensive income

in € thousand 2013 2012

Revenues 108,235 112,436

Earnings before tax on income 24,211 20,487

Income tax 0 3

Other comprehensive income -4,218 9,946

Total comprehensive income 19,993 30,436

Earnings after tax from continuing activities attributable to non- controlling interests 16,197 13,705

Dividends paid to non-controlling interests 7,685 5,290


Summarised cashflow statement



Profit or loss 24,211 20,490

Income tax 0 -3

Depreciation, amortisation, impairment losses and write-ups 34,597 31,675

Net interest 19,171 31,102

Other effects from operating activities -1,347 848

Cashflow from operating activities 76,632 84,112


Investments in vessels (dry-docking) -2,356 -2,797

Other effects from investing activities 85 184

Cashflow from investing activities -2,271 -2,613


Proceeds from issuing equity instruments and capital increase 62,363 0

Payments for transaction costs on equity proceeds -1,433 0

Dividends paid -11,484 -7,907

Repayments of financial debt -94,930 -40,440

Payments for transaction costs on debt proceeds -1,355 0

Interest paid -22,559 -31,714

Cashflow from financing activities -69,398 -80,061

Change in cash and cash equivalents 4,963 1,437

Currency translation effects on cash and cash equivalents -3,597 -808

Cash and cash equivalents at beginning of period 43,318 42,689

Cash and cash equivalents at end of period 44,684 43,318

6.3 Significant restrictions

The protected rights of other shareholders of Rickmers Group subsidiaries MS “Lolland” Schifffahrtsgesell schaft mbH & Co. KG and MS “Gotland” Schifffahrtsgesell-schaft mbH & Co. KG provided for under company law partially restrict Rickmers Group access to the assets of the respective subsidiaries and its ability to meet obligations ( primarily ship disposals, encumbrances on the vessels and withdrawing liquidity).

Apart from transactions which by law have to be approved, the articles of association of associates and joint ventures in which the Rickmers Group holds 50 percent or less of the voting rights contain no further restrictions.

Other relevant restrictions arise from loan agreements that require a minimum level of liquidity from the Rickmers Group and/or other shareholders (€ 35,642 thousand). Furthermore, as it is customary in the industry for all ship financing agreements to be collateralised by senior ship mortgages, the free or encumbered disposal of vessels requires the approval of the creditors.

Restrictions relating to the intangible assets, vessels, other property, plant and equipment and cash and cash equiva-lents are described in Sections 18, 19, 20 and 27.

legal provisions governing Singapore business trusts deter-mine the options available to the Rickmers Group to gain access to the assets of Rickmers Maritime, Singapore and its ability to meet obligations. In a Singapore business trust, the board of Directors of trustee managers, currently made up of a majority of independent members, determines div-idend payments. In doing so, the board of Directors takes equal account of all shareholders in Rickmers Maritime. Furthermore, the general meeting of Rickmers Maritime, Singapore, has to approve significant transactions with the Rickmers Group.


6.4 Investments in joint ventures

The Rickmers Group has invested in the following joint ventures:

Name and location of the subsidiary Share in %

Description of the relationship

Consolidation method

Harper Petersen & Co. (GmbH & Cie. KG), Hamburg 50.0 1. At equity

A.R. Maritime Investments Pte. ltd., Singapore 10.0 2. At equity

Maersk-Rickmers u.S. Flag Project Carrier llC, Delaware/uSA 50.0 3. At equity

The following describes the relationship of the Rickmers Group to the joint ventures:

1. Harper Petersen & Co. (GmbH & Cie. KG) operates as a broker for chartering out the Rickmers Group's container fleet.

2. The joint venture was established with the aim of

investing in container ships together with the joint venture partner. The parent company founded jointly operates as A.R. Maritime Investment Pte. Ltd.

3. Maersk-Rickmers U.S. Flag Project Carrier LLC was estab-lished to tap the North American market for Rickmers linie services.

There is no reliable fair value for the Group‘s interests in the three non-listed companies as shares are not traded on any active market.

In connection with its investment in A.R. Maritime Invest-ments Pte. Ltd., Rickmers Reederei GmbH & Cie. KG grants another shipping company a guarantee relating to the purchase of three vessels. The guarantee ends with the payment of the purchase price, at the latest however on 31 December 2014. There is no obligation to account for the guarantee as the Rickmers Group will receive the vessels should the debtor default. by the end of February 2014, all vessels were transferred to the ownership of the joint venture and therefore the guarantee was not utilised.

The summarised financial information for the three above- mentioned non-significant joint ventures is provided below:


Earnings after tax from continuing activities -2,998 1,187

Other comprehensive income 146 0

Total comprehensive income -2,852 1,187


6.5 Investments in associates

The table below lists the significant associates of the Rickmers Group:

Name and location of the subsidiary Share in %

Description of the relationship

Consolidation method

Colombo International Nautical and Engineering College (Pvt.) ltd., Colombo, Sri lanka 12.5 1. At equity

Madryn Holdings Inc., Manila, Philippines 40.0 2. At equity

Rickmers Marine Agency Philippines Inc., Manila, Philippines 25.0 3. At equity

MS “PATRICIA RICKMERS” Reederei Rickmers GmbH & Cie. KG), Hamburg 40.4 4. At equity

Wallmann & Co. (GmbH & Co.), Hamburg 25.1 5. At equity

The following describes the relationship of the Rickmers Group to the associates:

1. The investment in Colombo International Nautical and Engineering College (Pvt.) Ltd., which operates as a training centre, ensures the training and development of seafarers within the Rickmers Group.

2. Madryn Holdings Inc. is the holding company for Rickmers Group's business activities in the Philippines.

3. As a staffing agency, Rickmers Marine Agency Philippines Inc. is the first port of call for Philippine seafarers.

4. MS “PATRICIA RICKMERS” Reederei Rickmers GmbH & Cie. KG contains a container ship (2,226 TEu).

5. Wallmann & Co. (GmbH & Co.) is a strategic invest-ment in a terminal operator in the port of Hamburg. It operates to ensure that project cargoes and break-bulk mainly transported by Rickmers-linie is loaded and unloaded flexibly.

There are no share prices for the companies mentioned above as they are all non-listed companies.

The summarised financial information for the associates is presented below:


Earnings after tax from continuing activities -2,251 -657

Other comprehensive income 175 -1

Total comprehensive income -2,076 -658


7 Revenues

Revenues consist of the following:


Revenues from charter 341,254 352,894

Revenues from freight 186,712 209,179

Revenues from ship management 42,147 75,364

Other revenues 8,496 10,560

Revenues 578,609 647,997

The downturn in revenues is largely attributable to the dis-posal of KG-fund ships, which led to a decline in revenues from shipmanagement. lower freight and charter rates are another reason for the downturn in revenues.

Other revenues comprise insurance commission, income from trusteeship services and incidental services relating to freight sales.

Revenues contain the proportional recognition of income of € 3,224 thousand (2012: € 3,218 thousand) included in the period for voyages not yet completed.

Revenues classified by segment and region can be found in the segment report (see Section 39).

8 Changes in inventories

In 2013, changes in inventories amounted to € 157 thousand (31 Dec. 2012: € -157 thousand).

9 Other operating income

Other operating income consists of the following:


Exchange rate gains 19,025 13,714

Sundry operating income 11,887 11,999

Income from reimbursement 2,103 2,447

Income from trade and other receivables impaired 923 622

Income from the disposal of non-financial assets 37 29

Other own costs capitalised 17 0

Income from the valuation of derivatives 0 30,521

Other operating income 33,992 59,333

Sundry operating income primarily concerns reimburse-ments for personnel and IT expenses and ship operating costs from third parties.

Foreign exchange gains mainly contain gains from changes in the exchange rate between transaction and payment dates of assets and liabilities, gains from the measurement of monetary assets at the balance sheet date and exchange rate effects from currency options and forward exchange transactions.

Income from the measurement of derivatives in 2012 results from the derecognition of FX options with a negative m arket value as part of the restructuring of the Group's currency hedging strategy.

NOTES TO THE CONSOlIDATED INCOME STATEMENT


10 Cost of materials

The cost of materials comprises the following:


Cost of raw materials, consumables and supplies -76,944 -84,975

loading/harbour expenses, sundry vessel voyage expenses -59,116 -66,334

Charter expenses -41,377 -33,252

Crewing expenses -37,982 -43,792

Vessel maintenance costs -25,158 -22,298

Insurance expenses -15,463 -15,582

Commission expenses -9,216 -10,685

Other vessel operating expenses -4,288 -5,289

Agency expenses -1,396 -2,073

Expenses for ship management -967 -1,692

Sundry cost of purchased services -630 -1,924

Cost of purchased services -195,593 -202,920

Cost of materials -272,537 -287,894

The cost of raw materials, consumables and supplies r elate in particular to lubricants of € 11,168 thousand (2012: € 11,016 thousand) and fuel expenses of € 62,045 thousand (2012: € 72,640 thousand).

11 Personnel expenses

Personnel expenses are comprised of the following:


Salaries and wages -80,719 -87,696

Other personnel expenses -623 -750

Wages, salaries and other personnel expenses -81,342 -88,446

Social charges -6,526 -6,098

Pension costs -604 -967

Social charges and pension costs -7,130 -7,065

Personnel expenses -88,472 -95,511

Pension costs contain expenses for defined contribution pension plans of € 530 thousand (2012: € 896 thousand) and expenses for defined benefit plans. Details of these are presented in Section 30.

The average number of employees was as follows:

Annual average number of employees 2013 2012

Sea personnel 2,875 3,018

Own 1,743 2,008

External 1,132 1,010

Staff ashore 503 472

Own 503 472

Total 3,378 3,490

On average, 1,132 seafarers (2012: 1,010) were employed on vessels in the Rickmers fleet by external crewing agencies.

The reduction in sea personnel is primarily attributable to the disposal of KG funds vessels.


12 Depreciation, amortisation, impairment losses and write-ups on intangible assets and on property, plant and equipment

Depreciation and amortisation are comprised of the following:


Depreciation of property, plant and equipment -112,014 -111,828

Amortisation of intangible assets -778 -322

Scheduled depreciation and amortisation -112,792 -112,150

Impairment of property, plant and equipment -15,960 -6,333

Impairment of intangible assets -65 -2,505

Impairment losses -16,025 -8,838

Income from write-ups 6,183 5,726

Amortization, depreciation and impairment losses for intangible assets and property, plant and equipment -122,634 -115,262

Scheduled amortisation of intangible assets relates in full to software. Details of this are presented in Section 18.

Scheduled depreciation and impairment losses of property, plant and equipment largely relate to vessels. More details can be found in Section 19.

There were some write-ups for individual vessels. Details of these vessels can be found in Section 19.

13 Other operating expenses

Other operating expenses consist of the following:


Sundry operating expenses -15,430 -13,404

Exchange rate losses -13,757 -8,282

Allowances on trade and other receivables -7,992 -12,126

legal, audit and consultancy fees -7,863 -7,518

Rental and lease expenses -4,324 -3,956

Travel and business entertainment expenses -3,001 -3,221

Maintenance and repairs -1,574 -1,085

Communication expenses -1,031 -1,125

Car fleet expenses -673 -700

Insurance -586 -630

Other operating expenses -56,230 -52,047

The most significant items included in sundry operating expenses relate to the costs of maintaining IT hardware and software, additions to provisions and expenses involved in training sea personnel. In addition, this also includes expenses for staff training and development.

Foreign exchange rate losses mainly contain losses from changes in the exchange rate between transaction and payment dates of assets and liabilities, losses from the measurement of monetary assets at the balance sheet date and exchange rate effects from currency options and forward exchange transactions.


14 Results from investments accounted for using the equity method

The loss from equity investments concerns joint ventures and associates and amount to € -5,244 thousand (2012: € 1,106 thousand). This is comprised of the following:


Share of profit or loss -4,636 24

of which associates -2,085 67

of which joint ventures -2,551 -43

Other adjustments recognised in income -608 1,082

of which associates -161 -149

of which joint ventures -447 1,231

Profit or loss from investments accounted for using the equity method -5,244 1,106

15 Other income from investments

Other income from investments amounts to € -4,864 t housand (2012: € -2,124 thousand) and largely relates to im-pairment losses on other investments of € -6,595 thousand (2012: € -4,133 thousand). Income from dividends of € 1,579 thousand had a countering effect (2012: € 726 thousand).

16 Financial result

The financial result can be summarised as follows:


Interest income from loans and receivables, cash and cash equivalents 432 332

Interest income from discounting 0 19

Other Interest and similar income 1,821 2,361

Interest income 2,253 2,712

Interest expenses on financial debt -68,361 -70,434

Interest expenses on interest derivatives -13,059 -25,508

Other Interest and similar expenses -2,034 -563

Interest expenses -83,454 -96,505

Fair value gain from revaluation of financial assets and liabilities 32,356 10,215

Income from reversal of allowances on loans 671 725

Other financial income 33,027 10,940

Fair value loss from revaluation of financial assets and liabilities -20,816 -52,708

Allowances on loan receivables -549 -6,750

Other financial expenses -21,365 -59,458

Financial result -69,539 -142,311


Other interest and similar income largely results from loans to participating interests.

Interest expenses on financial debt mainly results from loans and bonds issued. Details of the loans can be found in Section 32.

Interest expenses on interest rate derivatives relate to d erivatives measured in connection with a hedging relationship in accordance with IAS 39. Details of the derivatives can be found in Section 37.

Other interest and similar expenses largely concern interest for the utilisation of temporary credit limits.

Income and losses from the fair value measurement of fi nancial assets and liabilities concern interest derivatives concluded for economic hedging purposes.

17 Income tax

Income tax are summarised as follows:


Current income tax 9,844 -3,110

Deferred income tax -1,565 684

Income tax 8,279 -2,426

Other changes to deferred tax at the beginning and the end of the period arise from currency translations and were recognised in the respective reserve.

Tax on the Group's pre-tax profit varies from the theoretical amount, which is based on applying the weighted average tax rate for the Group to earnings before tax, as follows:



Expected income tax expense (2013: 6%; 2012: 6%) 406 -788

Tax effects from:

Tax exempt income 1,635 1,045

Tonnage tax -2,999 -1,909

Non-deductible expenses -1,873 -474

Additions and deductions for local taxes -3,900 -582

Changes in the measurement of capitalised deferred tax (allowances and loss carry forwards) -8,040 -2,142

Permanent differences -19 -2

At-equity reconciliation effects -73 7

Effects from tax rate differences 11,138 2,434

Reversal of tax provisions 12,014 -15

Other -10 0

Income tax 8,279 -2,426

The average tax rate for the Group amounted to 6 percent (2012: 6 percent) and is based on the weighted, normalised Group tax rate.


NOTES TO THE CONSOlIDATED bAlANCE SHEET

18 Intangible assets

Intangible assets developed as follows:

in € thousand Goodwill SoftwarePayments on

account Total

Acquisition costs

1 Jan. 2012 1,369 2,801 0 4,170

Additions to the group of consolidated companies 2,505 0 0 2,505

Other additions 0 242 2,315 2,557

Reclassifications 0 281 0 281

Other disposals 0 -1 0 -1

Currency translation 0 -25 -7 -32

31 Dec. 2012 3,874 3,298 2,308 9,480

Additions to the group of consolidated companies 65 0 0 65

Other additions 0 261 83 344

Reclassifications 0 2,292 -2,303 -11

Other disposals 0 -114 0 -114

Currency translation 0 -65 -5 -70

31 Dec. 2013 3,939 5,672 83 9,694

Accumulated amortisation and impairment losses

1 Jan. 2012 -1,369 -2,257 0 -3,625

Amortisation and impairment losses -2,505 -322 0 -2,826

Reclassifications 0 -138 0 -138

Other disposals 0 1 0 1

Currency translation 0 20 0 20

31 Dec. 2012 -3,874 -2,694 0 -6,568

Amortisation and impairment losses -65 -778 0 -843

Other disposals 0 113 0 113

Currency translation 0 48 0 48

31 Dec. 2013 -3,939 -3,311 0 -7,250

Net book value

1 Jan. 2012 0 545 0 545

31 Dec. 2012 0 604 2,308 2,912

31 Dec. 2013 0 2,361 83 2,444


19 Vessels

Vessels developed as follows:

in € thousandVessels ( incl. dry-docking)

Acquisition costs

1 Jan. 2012 2,894,158

Additions to the group of consolidated companies 1,775

Other additions 4,384

Other disposals -41,211

Currency translation -45,519

31 Dec. 2012 2,813,587

Other additions 43,105

Reclassifications -27,321

Other disposals -4,670

Currency translation -106,694

31 Dec. 2013 2,718,006


1 Jan. 2012 -280,187

Depreciation and impairment losses -117,117

Write-ups 5,726

Other disposals 10,727

Currency translation 5,555

31 Dec. 2012 -375,296

Depreciation and impairment losses -126,961

Reclassifications 626

Write-ups 6,182

Other disposals 4,670

Currency translation 14,806

31 Dec. 2013 -475,973

Net book value

1 Jan. 2012 2,613,971

31 Dec. 2012 2,438,291

31 Dec. 2013 2,242,034

The net book value of vessels reclassified in the 2013 finan-cial year to non-current assets held for sale amounted to € 26,695 thousand. The reclassification comprises the total amount of the acquisition-related costs, the accumulated depreciation and impairment losses. More details on this can be found in Section 28.

As at 31 December 2013, the book value of vessels that are subject to a restriction in the form of a shipping mortgage amounted to € 1,491,748 thousand. The encumbrance is the result of existing loan agreements.

borrowing costs were not capitalised as part of acquisition-related costs for vessels in the reporting period.

Given the current situation on the shipping market, all vessels were reviewed for impairment. This resulted in an accumulated impairment loss of € 15,960 thousand (2012: € 6,333) which is contained in depreciation and impairment losses. Write-ups of € 6,182 thousand were recognised for some vessels (2012: € 5,726 thousand).

Vessels included in property, plant and equipment are allocated to the Maritime Assets segment. More details can be found in Section 39.

Generally, the Rickmers Group defines the recoverable amount for vessels on the basis on an estimate of their long-term earnings potential. The technical basis of the value in use calculation is the discounted cashflow (DCF) method. More details on the model and the parameters can be found in Section 5.2 and in Section 4.5.

The weighted average cost of capital (WACC) used for dis-counting was based on capital market procedures, aver-aging equity and debt capital costs. The pre-tax weighted average cost of capital, taking into account the type of ves-sel and the remaining useful life of the vessel, lies between 5.65 and 7.76 percent in 2013. In 2012, the cost of capital was between 5.58 and 7.74 percent.


The sensitivities of the most significant parameters on the impairment of vessels are summarised in the table below:

Sensitivity analysis

Change in impairment in

€ thousand

Relation to the book value of vessels in %

Sensitivity 1: Change in future charter income

+ 1.5% +8,833 +0.39%

- 1.5% -13,032 -0.58%

Sensitivity 2: Change in vessel operating costs

+ 3% -14,912 -0.67%

- 3% +11,508 +0.51%

Sensitivity 3: Change in weighted average costs of capital (WACC)

+ 20 basis points -15,322 -0.68%

- 20 basis points +6,685 +0.30%

20 Other property, plant and equipment

Other property, plant and equipment developed as follows:

in € thousand

land, similar rights and buildings

Other e quipment and office

equipment Total

Acquisition costs

1 Jan. 2012 26 10,966 10,993

Additions to the group of consolidated companies 0 48 48

Other additions 0 1,306 1,306

Reclassifications -26 -295 -322

Other disposals 0 -181 -181

Currency translation 0 -165 -165

31 Dec. 2012 0 11,679 11,679

Other additions 0 616 616

Reclassifications 0 17 17

Other disposals 0 -1,689 -1,689

Currency translation 0 -341 -341

31 Dec. 2013 0 10,282 10,282


in € thousand

land, similar rights and buildings

Other e quipment and office

equipment Total


1 Jan. 2012 -26 -7,595 -7,620

Additions to the group of consolidated companies 0 -15 -15

Amortisation and impairment losses 0 -1,044 -1,044

Reclassifications 26 154 180

Other disposals 0 170 170

Currency translation 0 125 125

31 Dec. 2012 0 -8,205 -8,205

Amortisation and impairment losses 0 -1,013 -1,013

Reclassifications 0 -4 -4

Other disposals 0 1,607 1,607

Currency translation 0 255 255

31 Dec. 2013 0 -7,359 -7,359

Net book value

1 Jan. 2012 0 3,373 3,373

31 Dec. 2012 0 3,475 3,475

31 Dec. 2013 0 2,923 2,923

borrowing costs were not capitalised as part of a cquisition-related costs for other property, plant and equipment in the reporting period.

Other property, plant and equipment has neither been pledged nor are property rights in any manner restricted.

21 Investments accounted for using the equity method

The carrying amount of investments developed as follows:


As at 1 Jan. 12,467 17,399

Effects from tax rate differences -4,636 24

Depreciation -352 -164

Other adjustments recognised in income -255 1,247

Changes in the group of consolidation 8,214 -4,180

Capital increases/decreases 3,792 0

Dividends -1,732 -1,811

Other 35 -48

As at 31 Dec. 17,533 12,467

The carrying amounts of at-equity accounted investments do not recognise losses of € 3 thousand (31 Dec. 2012: € 1,247 thousand; 1 Jan. 2012: € 0 thousand). In the current finan-cial year, losses from the prior period of € 258 thousand were captured subsequently. The accumulated losses not recognised in the carrying amounts of investments totalled € 992 thousand (31 Dec. 2012: € 1,247 thousand; 1 Jan. 2012: € 0 thousand).


22 Other financial assets

Other financial assets consist of the following:

31 Dec. 2013

in € thousand Non-current Current Total

Investments in affiliates 1,135 0 1,135

Other investments 2,349 0 2,349

Investments in equity instruments 3,484 0 3,484

loans 4,524 18,152 22,676

Receivables from cash pooling 0 13 13

Other financial receivables 0 86 86

Financial receivables 4,524 18,251 22,775

Other financial assets 8,008 18,251 26,259

31 Dec. 2012





loans 5,865 3,503 9,368

Other financial receivables 0 67,688 67,688



1 Jan. 2012





loans 9,410 234 9,644

Other financial receivables 0 51,789 51,789



Other financial receivables from the prior year contain claims on reimbursement guarantees relating to advance payments on cancelled vessel newbuildings (31 Dec. 2012: € 67,556 thousand; 1 Jan. 2012: € 51,789 thousand).


Impairments of other financial assets refer mainly to in-vestments and loans to the KG funds fleet and are listed in the table below:

in € thousand

Investments in equity

instruments Financial

receivables Total

Allowance as at 1 Jan. 2012 -4,371 -1,624 -5,995

Additions -4,133 -6,719 -10,852

use 276 0 276

Release 245 725 970

Currency-related and other changes 107 -1,351 -1,243

Allowance as at 31 Dec. 2012 -7,876 -8,969 -16,845

Additions -6,595 -549 -7,144

use 1 0 1

Release 163 672 835

Currency-related and other changes 302 339 641

Allowance as at 31 Dec. 2013 -14,005 -8,507 -22,512

Currency-related and other changes to financial r eceivables in 2012 primarily refer to reclassifying allowances on trade receivables to allowances on financial receivables.

23 Trade and other receivables

Trade and other receivables are broken down as follows:

31 Dec. 2013


Gross amount due from customers for contract work 0 2,667 2,667

Sundry trade receivables 0 21,587 21,587

Trade receivables 0 24,254 24,254

Receivables from insurance claims 0 1,262 1,262

Sundry other receivables 133 6,598 6,731

Other receivables 133 7,860 7,993

Trade and other receivables 133 32,114 32,247


31 Dec. 2012





Receivables from insurance claims 0 1,762 1,762




1 Jan. 2012





Receivables from insurance claims 0 105 105




Trade receivables from participating interests amount to € 9,354 thousand (31 Dec. 2012: € 11,848 thousand; 1 Jan. 2012: € 13,740 thousand). Trade receivables from related parties are listed in Section 44.

Other trade receivables contain outstanding balances from charter, shipping and freight transactions.

Gross amounts due from customers for contract work refer to deferred freight transaction from vessel voyages that have not been completed.

Details of allowances on trade and other receivables can be found in Section 37.5.5.

Information on the ageing of overdue but not yet impaired trade and other receivables can be found in Section 37.5.6.


24 Inventories

Inventories are composed as follows:


Raw materials and supplies 15,272 14,183 15,343

Work in progress 209 51 208

Finished goods and goods for resale 201 212 224

Payments on account 1,593 1,833 2,067

Inventories 17,275 16,279 17,842

Raw materials and supplies primarily comprise fuels and lubricants.

In 2013, the carrying amount of inventories recognised as an expense amounted to € 59,638 thousand (2012: € 69,781 thousand).

Inventories were not impaired in 2013 (2012: none).

25 Other non-financial assets

As at 31 December 2013, other non-financial assets amount-ed to € 8,556 thousand (31 Dec. 2012: € 8,598 thousand; 1 Jan. 2012: € 6,570 thousand). These largely comprised VAT receivables and prepaid expenses.

26 Income tax receivables

As at 31 December 2013, income tax receivables amounted to € 1,338 thousand (31 Dec. 2012: € 236 thousand; 1 Jan. 2012: € 0 thousand).

27 Cash and cash equivalents

As at 31 December 2013, cash and cash equivalents amount-ed to € 144,788 thousand (31 Dec. 2012: € 72,064 thousand; 1 Jan. 2012: € 93,130 thousand) and largely comprised cash at banks and cash in hand.

The development of cash and cash equivalents is presented in the cashflow statement. More details on the cashflow statement can be found in Section 38.

Cash and cash equivalents that are subject to restrict-ed access to the Group amount to € 35,642 thousand. This minimum level of liquidity is prescribed in the Group's loan agreements. More details can be found in Section 6.3.

28 Assets held for sale

At the end of the financial year, the item comprises five vessels from the Maritime Assets segment that were sold at their carrying amount in the first two months of 2014.

The carrying amount of vessels classified as held for sale at the balance sheet date was € 26,695 thousand (31 Dec. 2012: € 0 thousand; 1 Jan. 2012: € 0 thousand). The


vessels were measured at fair value on the basis of the DCF method, which corresponds to level 2 of the fair value hierarchy. More information on the DCF method applied can be found in Section 5.2 and in Section 19.

No impairments were recognised for the assets held for sale.

29 Equity

The limited partner’s shares of Rickmers Holding GmbH & Cie. KG are classified as puttable financial instruments in accordance with IAS 32. The subscribed capital of the com-pany as at 31 December 2013 amounted to € 6,405 thousand (31 Dec. 2012: € 6,405 thousand; 1 Jan. 2012: € 6,405 thou-sand). Capital attributable to the general partner amount-ed to € 0 thousand (31 Dec. 2012: € 0 thousand; 1 Jan. 2012: € 0 thousand).

The personally liable partner is Verwaltung Rickmers Holding GmbH, Hamburg. Sole partner in this company is bertram R.C. Rickmers, Hamburg. Jan boje Steffens, Hamburg, left the company as limited partner with effect from 30 June 2012.

Given the prevailing partnership structure, the puttable financial instruments have a virtually unlimited holding period (liability deposit). Puttable financial instruments fully satisfy the requirements for being classified as equity instruments described in IAS 32. In view of the absence of market transactions, it is not possible to determine the fair value of capital provided by the limited partners at the balance sheet date with any degree of reliability.

Due to existing loan agreements, the limited partner is only entitled to withdraw € 5,000 thousand per year. This requires the prior passing of a resolution by the part-ners. Withdrawals for tax payments are excluded from the restriction.

The accumulated other comprehensive income largely com-prises reserves for currency translation differences and the effective part of cashflow hedges recognised in other com-prehensive income. Due to the relevant provision under tax law, no (deferred) income tax is recognised in the individual items of other comprehensive income (31 Dec. 2012: none; 1 Jan. 2012: none).

Non-controlling interests mainly refer to Rickmers Maritime, Singapore.

The proportion of accumulated other comprehensive in-come attributable to non-controlling interests is as follows:

Non-controlling interests in accumulated other comprehensive income

in € thousand

Currency translation differences

Cashflow hedges Total

As at 1 Jan. 2012 0 -24,235 -24,235

Change -3,118 9,555 6,437

As at 31 Dec. 2012 -3,118 -14,680 -17,798

Change -9,888 6,168 -3,720

As at 31 Dec. 2013 -13,006 -8,512 -21,518

Furthermore, share capital of € 40,135 thousand was raised by Rickmers Maritime, Singapore in 2013. This corresponds to proceeds received from the issue of equity instru-ments and capital increase recognised in the consoli-dated cashflow statement less related transaction costs of € 1,433 thousand.

The extent and development of individual equity items is presented in the statement of changes in shareholder’s equity.


30 Provisions for pensions and similar obligations

Defined benefit pension plans are in place at Rickmers-Linie GmbH & Cie. KG. They are largely identical for all benefi-ciaries and cover lifelong retirement, invalidity and surviving dependants' pensions. In two cases, benefits from another pension fund are added directly to the pension benefits. On 31 December 2013, the plan benefits one active employee (31. Dec. 2012: one; 1 Jan. 2012: one) and two employees (31. Dec. 2012: two; 1 Jan. 2012: three) who have left the

company with vested entitlements as well as eleven retired employees (31. Dec. 2102: eleven; 1 Jan. 2012: ten).

In order to calculate the expenses and obligations relating to the defined benefit pension plan, the Rickmers Group draws on statistical and actuarial calculations. Following the assessment of the actuary, net obligations, after im-puted benefits have been deducted, are recognised. The calculation is based not only on assumptions regarding the discounting rate, but also on the anticipated development of future wages and salaries. Provisions for pensions under defined benefit plans are measured as set out in IAS 19 using actuarial parameters:

31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

Discount rate 3.1% 3% 4.5%

Pension trend 4.5% 4.5% 4.5%

Gross pension5.5%

every three years5.5%

every three years5.5%

every three years

Addition of benefit of another pension fund -1% p. a. -1% p. a. -1% p. a.

The present values of the pension defined benefit obliga-tions (DbO) were calculated using K. Heubeck's “Richttafeln 2005 G” (mortality tables) calculated using the discount rate mentioned above.

The development of the present value of the DbO is p resented as follows:


Present value of the DBO as at 1 Jan. 1,777 1,550

Service cost 6 45

Interest expense 54 113

Payments -131 -121

Actuarial gains/losses -3 190

Present value of the DBO as at 31 Dec. 1,703 1,777

The actuarial gains of € 3 thousand in 2013 are made up of interest rate changes of € 19 thousand and of experience-based adjustments of € -16 thousand. In 2012, the actuarial losses amounted to € 190 thousand; of which € 158 thou-sand were attributable to interest rate changes and € 32 thousand to experience-based adjustments.


The development of actuarial gains and losses which are offset against equity (in other comprehensive income) before taking account of deferred tax are presented as follows:


Differences at the beginning of the financial year 190 0

Actuarial gains/losses -3 190

Differences at the end of the financial year 187 190

No plan assets are available.

The weighted average duration of the benefit obligation amounts to 10.4 years as at 31 December 2013 (31 Dec. 2012: 10.7 years).

Pension expenses for financial years 2012 and 2013 are as follows:


Service cost 6 45

Interest expense 54 113

Costs of retirement pensions 60 158

A sensitivity analysis of the interest rate at the end of the reporting period is as follows:

Change in discount rateIncrease in the

discount rate (in € thousand)Decrease in the

discount rate (in € thousand)

2011 0.5 percentage points Reduction in the DbO by 71 Increase in the DbO by 78



The anticipated contribution to post-employment benefit plans (pension expense) for the year ending 31 Decem-ber 2014 is as follows:

in € thousand 2014

Service cost as at 1 Jan. 6

Interest of 3.1% until the end of the year 0

Anticipated service cost 6

DbO as at 1 Jan. 1,703

Pension benefits for a half year -65

Average DbO 1,637

Anticipated interest expense (3.1%) 51

Anticipated pension expense 57


31 Other provisions

Other provisions developed as follows:

in € thousand 1 Jan. 2012 Additions use Release Discounting

Changes in the group of

consolida-tion

Other changes 31 Dec. 2012

Provisions for impending losses 2,165 97 -118 -138 0 0 33 2,039

Provisions for personnel expenses 0 0 0 0 0 0 231 231

Other provisions 4,540 2,884 -3,550 -1,690 -19 100 79 2,345

Total 6,705 2,981 -3,668 -1,828 -19 100 343 4,614

in € thousand 1 Jan. 2013 Additions use Release Discounting

Changes in the group of

consolida-tion

Other changes 31 Dec. 2013

Provisions for impending losses 2,038 3,217 -2,129 -30 0 0 192 3,288

Provisions for personnel e xpenses 231 44 -15 -16 0 0 3 247

Other provisions 2,345 4,518 -1,895 -1,148 0 -1 4,139 7,958

Total 4,614 7,779 -4,039 -1,194 0 -1 4,334 11,493

As in prior years, provisions for impending losses comprise losses from freight services for vessel voyages that have not been completed. Additions to other provisions in this cur-rent financial year are largely influenced by possible claims from guarantees made to two KG fund vessels. As at 31 De-cember 2013, the Rickmers Group estimates the maturity for possible claims as less than one year. The increase in other provisions from other changes of € 4,139 thousand relates mainly to reclassifications.


32 Financial debt

Financial debt is comprised of the following:

31 Dec. 2013


bonds 216,979 10,273 227,252

bank liabilities 1,030,749 461,774 1,492,523

Other financial debt 43,546 17,337 60,883

Total 1,291,274 489,384 1,780,658

31 Dec. 2012



Other financial debt 60,617 15,178 75,795

Total 1,666,578 230,113 1,896,691

1 Jan. 2012



Other financial debt 74,080 0 74,080

Total 1,864,573 210,083 2,074,656

In 2013, a bond was issued at an annual interest rate of 8.875 percent, maturing on 11 June 2018. At the balance sheet date, accrued interest amounted to € 10,273 thousand.

bank liabilities mainly comprise loans to finance the Rickmers Group's ship portfolio. Within 2013, the reduction in bank liabilities of € 328,373 thousand (2012: € 179,680 thou-sand) is attributable to scheduled repayments, special repay-ments and a favourable trend in the foreign exchange rate.

A significant proportion of the loans are secured by ship mortgages amounting to € 1,491,478 thousand.

Other financial debt largely comprises loans from ship-yards. Repayments on these of € 12,047 thousand were made in 2013.


33 Deferred tax

Deferred tax consists of the following:


Deferred tax assets 2,242 1,918 744

Deferred tax liabilities 12,158 10,215 9,702

Deferred tax 9,916 8,297 8,958

The maturity structure of deferred tax assets and liabilities is as follows:


Assets liabilities Assets liabilities Assets liabilities

Deferred tax 3,112 13,028 4,056 12,353 3,015 11,973

of which current 2,227 330 1,813 694 545 460

of which non-current 885 12,698 2,243 11,659 2,470 11,513

Offset -870 -870 -2,138 -2,138 -2,271 -2,271

Total 2,242 12,158 1,918 10,215 744 9,702

The change in deferred tax assets and liabilities in the cur-rent year without taking into consideration the offsetting of balances with the same tax jurisdiction is as follows:


balance sheet item Assets liabilities Assets liabilities Assets liabilities

Intangible assets 0 0 0 0 0 0

Property, plant and equipment and vessels 23 10,060 108 11,454 82 11,236

Non-current financial assets 0 39 804 205 42 277

Other current assets 1,395 8 1,340 57 0 207

Provisions 0 323 11 331 15 0

Financial debt 509 2,598 222 306 790 0

Sundry liabilities 670 0 1,038 0 529 253

loss carryforwards 515 0 533 0 1,557 0

Total 3,112 13,028 4,056 12,353 3,015 11,973

Offset -870 -870 -2,138 -2,138 -2,271 -2,271

After offsetting 2,242 12,158 1,918 10,215 744 9,702

Deferred tax assets for tax loss carryforwards are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.


For domestic trade tax loss carryforwards of € 114,387 thou-sand (2012: € 55,445 thousand) and for foreign and domes-tic corporation tax loss carryforwards of € 26,616 thousand (2012: € 12,591 thousand), the Group has not recognised any deferred tax assets that can be carriedforward and offset against future taxable profit. Trade tax and corporation tax loss carry forwards can essentially be used for an unlimited period.

The Group has not recognised deferred tax liabilities for temporary difference arising from investments in subsidiaries, associates and joint arrangements of € 6,633 thousand (2012: € 6,140 thousand) as it is probable that the temporary difference will not reverse in the foresee-able future.

As at 31 December 2013, no excesses of deferred tax assets were capitalised at companies that made a loss in the cur-rent or prior year (2012: € 385 thousand).

34 Trade and other payables

Trade and other payables are broken down as follows:

31 Dec. 2013


Gross amount due to customers for contract work 0 3,439 3,439

Sundry trade payables 0 43,036 43,036

Trade payables 0 46,475 46,475

liabilities from puttable instruments 2,111 350 2,461

Accruals for personnel expenses 0 5,768 5,768

Sundry other liabilities 72 4,630 4,702

Other liabilities 2,183 10,748 12,931

Total 2,183 57,223 59,406

31 Dec. 2012






liabilities from puttable instruments 1,063 303 1,366



Total 1,063 57,775 58,838


1 Jan. 2012






liabilities from puttable instruments 973 211 1,184



Total 1,662 61,213 62,875

Sundry trade payables recognise obligations to pay for goods or services that have been acquired from sup pliers as well as debtors with credit balances. liabilities from puttable instruments comprise non-controlling interests of subsidiaries that are recognised as liability according to IAS 32.

35 Non-financial liabilities

As at 31 December 2013, non-financial liabilities amount-ed to € 5,873 thousand (31 Dec. 2012: € 7,314 thousand; 1 Jan. 2012: € 5,664 thousand). They relate mainly to de-ferred income and VAT liabilities.

36 Current income tax liabilities

As at 31 December 2013, income tax liabilities amount to € 5,559 thousand (31 Dec. 2012: € 17,831 thousand; 1 Jan. 2012: € 16,906 thousand). They are recognised in full under current liabilities.

37 Financial instruments

37.1 Financial risk management

Financial risk management aims to identify and meas-ure any type of risk in good time and to take appropriate measures to limit it. This policy was supported as part of Group-wide risk and financial guidelines that aim to har-monise operational processes and responsibilities.

Financial risk management at the Rickmers Group focuses on creating clear and coherent conditions that are gen-erally understandable and workable. Its main objectives and principles include making Group-wide uniform use of financial markets and focusing on financial transactions in underlying operational business that are demand-driven. Risk items are hedged by financial instruments based on the extent of the risk and the inherent potential risk of loss. Group risk policy stipulates that financial transactions are only carried out with approved counterparties and with the use of approved financial instruments.


As an internationally trading concern, Rickmers Group is, within the framework of business operations, exposed to a series of financial risks. These include in particular liquidity risks and currency risks, interest rate risks and default risks that could have adverse effects on the Group's financial position, financial performance and cashflows. These risks are largely managed centrally by the Group Treasury & Risk department.

It is company policy to limit market price risks resulting from normal business operations by using hedging instru-ments. The Group uses derivative financial instruments to hedge certain risk exposures. The individual rules, com-petences and operations, transaction limits and risk pos-itions are set out in guidelines and implementation rules. Compliance with these rules is monitored regularly. The basis for all hedging activities within the Group is both underlying transactions that are appropriately accounted for and business planned for the future. Accredited stand-ard software is used to collate, evaluate and report on hedge transactions.

37.2 Market risks

37.2.1 Overview

Market risks include fluctuations to the fair value or to fu-ture payments received from financial instruments because of changes in the market price.

In the Rickmers Group, market risks comprise currency and interest rate risks. IFRS 7 requires companies to disclose a sensitivity analysis for each type of market risk, showing how profit or loss and equity could be affected by hypo-thetical changes in relevant risk variables. Sensitivities are calculated on the basis of analytical tools for currency and interest rate risks developed in house.

37.2.2 Interest rate risk

Interest rate risks arise through potential changes in the market rate of interest and, in the case of fixed-interest financial instruments, can lead to a change in the fair value while in the case of variable-rate financial instruments, can lead to interest payment fluctuations. The Rickmers Group interest rate risk results primarily from variable interest rate ship financing instruments. by use of interest rate hedging instruments, the Group achieves a balanced ratio between variable and fixed interest rate financial liabilities.

The presentation of the interest rate risk distinguishes between cashflow risks and present value risks. Finan-cial instruments with a variable rate of interest represent a cashflow risk because any change in the rate of interest would have a direct effect on interest result. In contrast, present value risks arise from longer-term fixed inter-est periods from the valuation of financial instruments. Accounting effects on changes in present value arise de-pending on the classification of the financial instrument and in view of the decision to apply hedge accounting.

Non-derivative financial instruments that are exposed to an interest rate risk mainly relate to variable-interest bank loans. For these financial instruments, no present value changes and related effects on the balance sheet or the income statement have arisen due to accounting at amort-ised cost. Furthermore, the Rickmers Group holds interest derivatives that swap variable interest on loans to a syn-thetic fixed interest rate. For part of the derivatives (Polaris companies), restructuring was carried out in the course of the 2012 financial year. Consequently, although the eco-nomic hedging relationship continues, it no longer meets the formal requirements for hedge accounting in line with IAS 39. Changes in interest thus have a direct effect on the profit or loss.


For other derivatives that continue to meet the require-ments for hedge accounting (Rickmers Maritime, Singapore), interest rate changes affecting income are to be recognised in other comprehensive income. More details on derivative financial instruments and hedge accounting can be found in Section 37.5.4.

A sensitivity analysis (before tax assessment) shows cashflow and present value risks at the financial year-end date. Taking account of the current low level of interest, the market interest rate was increased/lowered by +100/-50 basis points. If this would lead to a negative interest rate, a rate of 0 percent is assumed.

The effects on the income statement at the financial year-end date and on other comprehensive income are presented in the table below:

Impact on earnings Change in the variable interest rate

31 Dec. 2013

in € thousand +100 basis points -50 basis points

Earnings before tax on income 3,182 -3,892

Non-derivative financial instruments -9,021 2,519

Interest derivatives 12,203 -6,411

Other comprehensive income before tax on income 2,154 -1,012

Cashflow hedges 2,154 -1,012

31 Dec. 2012


Earnings before tax on income 8,011 -6,339


Interest derivatives 19,086 -9,844



1 Jan. 2012




Interest derivatives 903 -462



A hypothetical increase in the variable rate of interest of 100 basis points would increase earnings before tax as at 31 December 2013 by € 3,182 thousand (31 Dec. 2012: € 8,011 thousand; 1 Jan. 2012: € -9,634 thousand). Other compre-hensive income would increase because of interest deriva-tives in a hedging relationship by € 2,154 thousand (31 Dec. 2012: € 4,297 thousand; 1 Jan. 2012: € 23,900 thousand).


A hypothetical reduction in the variable interest rate of 50 basis points would reduce earnings before tax as at 31 December 2013 by € -3,892 thousand (31 Dec. 2012: € -6,339 thousand; 1 Jan. 2012: € 5,082 thousand). Other comprehensive income would decrease because of in-terest derivatives in a hedging relationship by € -1,012 thousand (31 Dec. 2012: € -2,087 thousand; 1 Jan. 2012: € -9,990 thousand).

37.2.3 Currency risks

Changes in exchange rates can result in detrimental changes in future cashflow from transactions and losses in financial instruments. For each company within the Rickmers Group, currency risks arise on transactions that are denominated in a currency other than the functional currency of the Group company.

The Rickmers Group operates internationally and is ex-posed to currency fluctuations, and continuously quanti-fies its exchange rate risk. Part of the payments in foreign currencies can be offset through Group-internal transac-tions, so that the Rickmers Group can reduce its exchange rate risk. To restrict the remaining risk arising from changes in the exchange rate, corresponding hedges may be con-cluded if the management so requires.

Within the Rickmers Group most companies are accounted for their business activities in EuR and uSD and are essen-tially exposed to fluctuations in uSD and JPy. The sensitivity analysis reflects this situation and shows the effects on earnings for non-derivative and derivative financial in-struments of a simulated revaluation/devaluation of the functional currency of 5 percent against other significant foreign currencies.

31 Dec. 2013

EUR/USD EUR/JPY USD/JPY

in € thousand +5% -5% +5% -5% +5% -5%

Earnings before tax on income -21 142 286 -316 60 -66

31 Dec. 2012


in € thousand +5% -5% +5% -5% +5% -5%

Earnings before tax on income 4,282 -4,736 878 -971 138 -152

1 Jan. 2012


in € thousand +5% -5% +5% -5% +5% -5%

Earnings before tax on income 2,525 -2,837 1,045 -1,155 5,346 -5,909

The simulated effects on earnings as at 1 January 2012 are largely attributable to a uSD/JPy currency derivative and loans in uSD and JPy for Group companies whose func-tional currency is EuR. Repayments and the maturity of the derivative minimise the effects in subsequent years to the exposure to JPy. The interim rise in the hypothetical earn-ings from uSD exposure as at 31 December 2012 is largely a result of an increased investment in Group companies by the Group's parent company.


37.3 Credit risk

From its operational business and from certain other fi-nancial instruments, the Rickmers Group is exposed to the risk of its business partners not being able to meet their obligations. A diversified client base and regular checks of creditworthiness help reduce the default risk resulting from financial instruments.

The maximum credit risk at the balance sheet date is largely reflected by the carrying amount of financial as-sets (without cash and cash equivalents) recognised in the balance sheet and amounts, as at 31 December 2013, to € 58,506 thousand (31 Dec. 2012: € 118,622 thousand; 1 Jan. 2012: € 116,159 thousand).

The credit risk from liquid funds only applies to banks. For this, the Group maintains short-term money market deposits.

The bank default risk covers all financial instruments con-cluded with the bank. For derivative financial instruments, the default risk is limited to the net items from positive and negative market values for these instruments. In accordance with contractual agreements, in the event of insolv ency, all derivative financial instruments concluded with the coun-terparty are collated at their positive and negative fair val-ues. The net result is either a receivable or a liability.

To avoid/reduce credit defaults from operational business, the Rickmers Group has a corresponding receivables manage-ment system that regularly monitors debtors and the maturity structures of trade receivables.

Given the global allocation of business activities and the ensuing diversification, there were no significant concen-trations of risk by counterparties in the past financial year.

In the period under review, the Rickmers Group neither received nor provided collateral.

37.4 Liquidity risk

37.4.1 Overview

The aim of liquidity management is to ensure that existing and future payment obligations can be met. Group liquidity is managed for this purpose centrally in the Group for all segments by the Treasury & Risk department.

Available liquidity reserves are made up of bank credits, short-term money deposits and a firmly committed, as at 31 December 2013 unused, credit line amounting to uSD 165 million. The basis for the disposition is a rolling liquidity planning system.

To optimise the use of the Group's liquidity, cash pos itions of significant Group companies are concentrated in a cash pool.


The Rickmers Group's net financial liabilities are defined as the sum of bank liabilities plus bond liabilities, minus cash and cash equivalents. As at 31 December 2013, these amounted to € 1,574,988 thousand (31 Dec. 2012: € 1,748,834 thousand; 1 Dec. 2012: € 1,907,448 thousand). More information can be found in Section 32.

bank liabilities contain some restrictions on possible pay-ments to shareholders.

The ability to service the debt and other expenses, is basic-ally dependent on the future business and earnings develop-ment of the Rickmers Group. For financial liabilities, there is the general risk that future financial terms and conditions relating to follow-up financing and refinancing will depend on the situation prevailing on money and capital markets at the given point in time and on the creditworthiness of the Rickmers Group. It cannot be ensured that independent of this the subsequent or refinancing of financial liabilities will occur at all or in the required amount.

The Rickmers Group is exposed to two significant concentra-tion risks where liquidity risks are concerned: the significant external finance sources are derived from a portfolio of banks,

however more than one-third of the financing volume is at-tributable to one counterparty. Given the successful entry into the capital market, other independent financing options, es-sentially remote from the banking sector, now exist for the Rickmers Group and these act to reduce the risk factor. The second concentration risk arises from the composition of agreed long-term charter contracts of the Group's own ships with over half of the Group-wide charter volume allotted to once charterer. However, this contractual party has a top-level credit rating.

Some terms contained in significant loan agreements with the Rickmers Group were not complied with in 2013. This was, in part, due to the successful issuance of the corporate bond and the capital expenditure made subsequently. Repayment sums and interest have since been paid.

To guarantee maximum possible transparency, the Rickmers Group issues regular reports on developments and close cooperation is maintained with the financing banks. The Rickmers Group is currently negotiating with its banks to develop an appropriate framework for future credit terms. This should reflect the significant changes to the financial conditions following the issuance of the bond and the transition to IFRS in 2013.


37.4.2 Maturity: Remaining terms of non-derivative financial liabilities and derivative financial instruments

The following table shows the contractually agreed cashflows from non-derivative and derivative financial in-struments undiscounted at the financial year-end date:

2014 2015–2018 from 2019 Total

Cashflows financial instruments as at 31 Dec. 2013 in € thousand Interest Repayment Total Interest Repayment Total Interest Repayment Total Interest Repayment Total

Non-derivative financial instruments

Financial debt -65,805 -506,530 -572,335 -128,803 -1,223,715 -1,352,518 -3,400 -50,729 -54,129 -198,007 -1,780,974 -1,978,981

Trade payables and other payables 0 -57,295 -57,295 0 -2,111 -2,111 0 0 0 0 -59,406 -59,406

Non-derivative financial instruments -65,805 -563,825 -629,630 -128,803 -1,225,826 -1,354,629 -3,400 -50,729 -54,129 -198,007 -1,840,380 -2,038,387

Derivative financial instruments (net cashflows)

Interest and currency derivatives -25,291 0 -25,291 -61,651 0 -61,651 -24,691 0 -24,691 -111,633 0 -111,633

Total -91,096 -563,825 -654,921 -190,454 -1,225,826 -1,416,280 -28,091 -50,729 -78,820 -309,640 -1,840,380 -2,150,020

2013 2014–2017 from 2018 Total



Financial debt -55,602 -229,732 -285,334 -106,150 -1,548,758 -1,654,908 -6,324 -123,608 -129,932 -168,076 -1,902,098 -2,070,174




Interest and currency derivatives -30,941 -92 -31,033 -89,229 0 -89,229 -37,719 0 -37,719 -157,889 -92 -157,981

Total -86,543 -287,599 -374,142 -195,379 -1,549,821 -1,745,200 -44,043 -123,608 -167,651 -325,965 -1,961,028 -2,286,993

2012 2013–2016 from 2017 Total

Cashflows financial instruments as at 1 Jan. 2012 in € thousand Interest Repayment Total Interest Repayment Total Interest Repayment Total Interest Repayment Total


Financial debt -64,679 -205,057 -269,736 -155,622 -1,545,460 -1,701,082 -11,699 -324,139 -335,838 -232,000 -2,074,666 -2,306,656

Trade payables and other payables 0 -61,903 -61,903 0 -973 -973 0 0 0 0 -62,876 -62,876



Interest and currency derivatives -31,744 -33,346 -65,090 -62,961 0 -62,961 -31,808 0 -31,808 -126,513 -33,346 -159,859

Total -96,423 -300,306 -396,729 -218,583 -1,546,433 -1,765,016 -43,507 -324,139 -367,646 -358,513 -2,170,878 -2,529,391

Amounts in foreign currencies are translated at the spot rate on the balance sheet date. Variable interest payments arising from the financial instruments were calculated using the most recent interest rates fixed before the reporting date and used for subsequent periods.

Derivative financial instruments show the undiscounted net payments for the respective term as this shows the cashflows on a contractual basis. Repayments refer to for-eign currency derivatives taking account on the earliest possible cash outflow.


37.4.2 Maturity: Remaining terms of non-derivative financial liabilities and derivative financial instruments

The following table shows the contractually agreed cashflows from non-derivative and derivative financial in-struments undiscounted at the financial year-end date:

2014 2015–2018 from 2019 Total



Financial debt -65,805 -506,530 -572,335 -128,803 -1,223,715 -1,352,518 -3,400 -50,729 -54,129 -198,007 -1,780,974 -1,978,981




Interest and currency derivatives -25,291 0 -25,291 -61,651 0 -61,651 -24,691 0 -24,691 -111,633 0 -111,633

Total -91,096 -563,825 -654,921 -190,454 -1,225,826 -1,416,280 -28,091 -50,729 -78,820 -309,640 -1,840,380 -2,150,020

2013 2014–2017 from 2018 Total



Financial debt -55,602 -229,732 -285,334 -106,150 -1,548,758 -1,654,908 -6,324 -123,608 -129,932 -168,076 -1,902,098 -2,070,174




Interest and currency derivatives -30,941 -92 -31,033 -89,229 0 -89,229 -37,719 0 -37,719 -157,889 -92 -157,981

Total -86,543 -287,599 -374,142 -195,379 -1,549,821 -1,745,200 -44,043 -123,608 -167,651 -325,965 -1,961,028 -2,286,993

2012 2013–2016 from 2017 Total

Cashflows financial instruments as at 1 Jan. 2012 in € thousand Interest Repayment Total Interest Repayment Total Interest Repayment Total Interest Repayment Total


Financial debt -64,679 -205,057 -269,736 -155,622 -1,545,460 -1,701,082 -11,699 -324,139 -335,838 -232,000 -2,074,666 -2,306,656

Trade payables and other payables 0 -61,903 -61,903 0 -973 -973 0 0 0 0 -62,876 -62,876



Interest and currency derivatives -31,744 -33,346 -65,090 -62,961 0 -62,961 -31,808 0 -31,808 -126,513 -33,346 -159,859

Total -96,423 -300,306 -396,729 -218,583 -1,546,433 -1,765,016 -43,507 -324,139 -367,646 -358,513 -2,170,878 -2,529,391

Amounts in foreign currencies are translated at the spot rate on the balance sheet date. Variable interest payments arising from the financial instruments were calculated using the most recent interest rates fixed before the reporting date and used for subsequent periods.


37.5 Additional information on financial instruments

37.5.1 Overview

This Section contains further details on the importance of financial instruments and on items in the balance sheet and statement of comprehensive income that affect financial instruments.

37.5.2 Book values, valuation and fair values by category and reconciliation to balance sheet items

The table below shows the book value, the valuation and fair value by class and IAS 39 category as at 31 December 2013:

balance sheet valuation according to IAS 39

in € thousandValuation categories according to IAS 39

book value at 31 Dec. 2013

Amortised cost Cost

Fair value recognised

in equity

Fair value recognised in profit or

lossFair value at

31 Dec. 2013

ASSETS

Derivative financial instruments 0 0 0 0 0 0

Cashflow hedges n/a 0 0 0 0 0

Other derivative financial instruments Held for sale 0 0 0 0 0 0

Other financial assets 26,259 22,775 3,484 0 0 22,775

Investments in affiliates and other investments Available-for-sale 3,484 0 3,484 0 0 n/a

Financial receivables loans and receivables 22,775 22,775 0 0 0 22,775

Trade and other receivables Loans and receivables 32,247 32,247 0 0 0 32,247

Cash and cash equivalents Loans and receivables 144,788 144,788 0 0 0 144,788


Derivative financial instruments 78,035 0 0 11,878 66,157 78,035

Cashflow hedges n/a 11,878 0 0 11,878 0 11,878

Other derivative financial instruments Held for sale 66,157 0 0 0 66,157 66,157

Financial debt Other liabilities 1,780,657 1,780,657 0 0 0 1,780,657

Trade and other payables 59,406 59,406 0 0 0 59,406

Trade payables Other liabilities 46,475 46,475 0 0 0 46,475

Other payables Other liabilities 12,931 12,931 0 0 0 12,931


The table below shows the book value, the valuation and fair value by class and IAS 39 category as at 31 December 2012:



book value at 31 Dec. 2012

Amortised cost Cost


in equity


lossFair value at

31 Dec. 2012

ASSETS


Cashflow hedges n/a 0 0 0 0 0 0







EquITy AND lIAbIlITIES 0 0 0 0 0 0









The table below shows the book value, the valuation and fair value by class and IAS 39 category as at 1 January 2012:



book value at 1 Jan. 2012

Amortised cost Cost


in equity


lossFair value at1 Jan. 2012

ASSETS


Cashflow hedges n/a 0 0 0 0 0 0






0 0 0 0 0 0


EquITy AND lIAbIlITIES 0 0 0 0 0 0









Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Other financial assets classified as available-for-sale are measured at fair value. If there is no reliable fair value, assets are measured at cost. Given their relatively short remaining terms, the book value of most financial receivables, trade receivables and trade payables, other receivables and payables, and cash and cash equivalents is the same as their fair value. The book value of variable interest-bearing, secured bank liabilities, which make up a large proportion of Rickmers Group's financial debt, ap-proximates the fair value.

The fair value of the publicly quoted bond is the nominal value multiplied by the prices quoted on the respective financial year-end dates.

37.5.3 Net gains/losses on financial instruments by category

Net gains/losses on financial instruments comprise interest, recognition and reversal of impairment losses, gains/losses from currency translation, valuation gains/losses and all other effects on earnings from financial instruments.

Financial assets and liabilities classified as held for trading refer solely to the gains/losses of those financial instru-ments that are not part of a hedging relationship pursuant to IAS 39.

The table below shows the net financial result valuation by valuation category:

2013

in € thousandResult from

interestOther result

Net financial result

loans and receivables 2,253 -6,913 -4,659

Available-for-sale financial assets -6,442 -6,442

Financial liabilities measured at amortised cost -70,394 5,866 -64,145

Financial instruments held for trading -13,059 11,160 -2,283

Total -81,200 3,671 -77,529

2012

in € thousandResult from

interestOther result

Net financial result

loans and receivables 2,712 -17,524 -14,812

Available-for-sale financial assets -2,850 -2,850

Financial liabilities measured at amortised cost -70,997 4,564 -66,433

Financial instruments held for trading -25,508 -12,087 -37,595

Total -93,793 -27,897 -121,690


Other result assigned to loans and receivables is largely at-tributable to additions to and reversals of allowances on trade and other receivables (2013: € -7,069 thousand; 2012: € -11,504 thousand) and financial receivables (2013: € 123 thousand; 2012: € -5,994 thousand). With regard to clas-sified as available-for-sale financial assets, other result generally contains impairment losses on investments. The measurement of bank loans held in foreign currencies is a significant component of other result for financial liabilities measured at amortised cost (2013: € 5,866 thousand; 2012: € 4,564 thousand). A positive contribution to other result for the current financial year of € 11,160 thousand (2012: € -12,087 thousand) results from the measurement of inter-est and currency derivatives not included in hedging rela-tionships in accordance with IAS 39 that are assigned to the financial assets and liabilities held for trading category.

Additions to allowances on trade and other receivables are generally shown in other operating expenses, while reversals are shown in the respective expense positions. In addition, measurement gains or losses from currency derivatives that are not part of a hedging relationship and which are thus assigned to the financial assets and liabili-ties held for trading category, are also assigned to other operating result.

37.5.4 Derivative financial instruments and hedge accounting

The Rickmers Group uses standardised derivative financial instruments to hedge the cashflow risk arising from exist-ing floating-rate liabilities and planned ‘highly probable’ floating-rate follow-on investments, and to reduce for-eign currency risks. The hedged cashflow risk is a result of fluctuations in the london Interbank Offered Rate (lIbOR).

The standard practice in ship financing is to arrange a loan initially only for part of the whole financing period of the vessels. The highly probable planned transactions included in the derivatives refer to the planned exten-sion of – ship financing and this is subject to interest rate risks.

The interest rate risk is generally hedged with the help of cashflow hedges. Currency risks are reduced by the use of forward exchange transactions and FX options in the form of economic hedging relationships. For these instru-ments, hedge accounting pursuant to IAS 39 has not been applied.

Interest derivatives are measured on the basis of the DCF-method utilising an interest curve free of risk and suitably risk-adjusted. FX options and forward exchange transac-tions are measured using corresponding models.

As at 1 January 2012, 18 cashflow hedges were account-ed for pursuant to IAS 39 in the Rickmers Group, at both Rickmers Maritime, Singapore, and the Polaris companies. The derivative portfolio was adjusted in December 2012. As a result, the nine hedges from the Polaris companies were each transferred to an economic hedging relationship and from this point were no longer designated as cashflow hedges in line with IAS 39. The changes in market values previously recognised in other comprehensive income are transferred to the income statement congruent to the original hedged item. The other nine Rickmers Maritime, Singapore, cashflow hedges satisfied the requirements for hedge accounting pursuant to IAS 39 for the whole of 2012 and 2013. Accordingly, changes in market values were rec-ognised in other comprehensive income.

In 2012 and 2013, the Rickmers Group did not have any financial assets and liabilities that could have been off-set in respect of derivative financial instruments. At 31 Decem ber 2012, forward exchange transactions amount-ing to € 0.1 million could have been offset against deriva-tive financial instruments of € 124 million. However, the Rickmers Group decided not to make use of this option.

In 2013, the Rickmers Group had no ineffectiveness for these hedges (2013: € 0 thousand; 2012: € -4,357 thou-sand) resulting for cashflow hedges recognised in the in-come statement.

At 31 December 2013, the cashflow hedges had a maturity of up to 18 months. In the reporting period, no derivative financial instruments were held for speculative purposes.


The following table shows the fair value and nominal amounts of the derivatives:

31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

in € thousand Fair valuesNominal amounts Fair values

Nominal amounts Fair values

Nominal amounts

Interest rate swaps -78,035 472,375 -123,999 656,837 -95,401 1,212,076

Interest rate swaps -78,035 472,375 -123,999 656,837 -93,769 1,147,256

In connection with cashflow hedges -11,878 175,642 -21,902 248,841 -85,688 607,917

Without hedge relationship -66,157 296,733 -102,097 407,996 -8,081 539,339

Collars 0 0 0 0 -1,632 64,820

Without hedge relationship 0 0 0 0 -1,632 64,820

Currency derivatives 0 0 91 3,182 -32,415 99,213

FX options 0 0 0 0 -31,939 93,603

Without hedge relationship 0 0 0 0 -31,939 93,603

Forward exchange contracts 0 0 91 3,182 -476 5,610

Without hedge relationship 0 0 91 3,182 -476 5,610

Total -78,035 472,375 -123,908 660,019 -127,816 1,311,289

The following table shows the reconciliation of accumu-lated other comprehensive income for cashflow hedges:

in € thousand Total

Attributable to shareholders

of Rickmers Holding GmbH

& Cie. KG

Attributable to non-control-ling interests

As at 1 Jan. 2012 -53,020 -28,786 -24,235

Additions -14,999 -14,211 -788

Reversals in the income statement 20,175 9,833 10,343

As at 31 Dec. 2012 -47,844 -33,164 -14,680

Additions -577 -191 -386

Reversals in the income statement 13,058 6,504 6,554

As at 31 Dec. 2013 -35,363 -26,851 -8,512

The proportion of accumulated other comprehensive in-come for cashflow hedges attributable to non-controlling interests is fully ascribed to Rickmers Maritime, Singapore.


The following tables show the maturity structure of the derivative financial instruments included in the hedging relationship in accordance with IAS 39 on the financial year-end date:

Maturity of cashflow hedges at 31 Dec. 2013in € thousand book value

Nominal volume up to 1 year 1 to 5 years

more than 5 years

Interest rate swaps

Assets 0 0 0 0 0

Liabilities -11,878 175,642 0 175,642 0

Maturity of cashflow hedges at 31 Dec. 2012in € thousand book value


more than 5 years

Interest rate swaps

Assets 0 0 0 0 0

liabilities -21,902 248,841 65,469 183,372 0

Maturity of cashflow hedges at 1 Jan. 2012in € thousand book value


more than 5 years

Interest rate swaps

Assets 0 0 0 0 0

liabilities -85,688 607,917 56,332 320,086 231,499

Cashflows and the gains/losses from these transactions are distributed across the term of the transaction.

37.5.5 Allowances on trade and other receivables

Allowances on financial assets are broken down as follows:

in € thousand Trade receivables Other receivables Total

Allowances as at 1 Jan. 2012 -2,257 -34 -2,291

Additions -12,126 0 -12,126

Release 622 0 622

Currency-related and other changes 1,535 0 1,535

Allowances as at 31 Dec. 2012 -12,226 -34 -12,260

Additions -4,171 -3,821 -7,992

Release 923 0 923

Currency-related and other changes 451 137 588

Allowances as at 31 Dec. 2013 -15,024 -3,718 -18,741


37.5.6 Age structure of due, but not impaired, financial assets

The age structure is broken down as follows:

Total nominal volumes

of which either due

nor impaired

thereof impaired

Of which due, but not impaired

in € thousandup to 30

days 31–60 days61–150

daysmore than

150 days

31 Dec. 2013

Trade receivables 39,277 9,897 15,024 4,271 631 1,640 7,814

Other receivables 11,710 7,992 3,718

31 Dec. 2012

Trade receivables 36,462 16,072 12,226 5,282 153 808 1,921

Other receivables 8,873 8,840 33

1 Jan. 2012

Trade receivables 38,386 29,214 2,257 2,893 911 1,309 1,802

Other receivables 5,810 5,776 34

Outstanding receivables not yet due were not impaired as there was no indication of default at the financial year-end date. until the consolidated financial statements were prepared, € 3,290 thousand of trade and other receivables overdue at 31 December 2013 has been repaid.

37.6 Calculating Fair value

The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The measurement and presentation of fair values of finan-cial instruments is based on a fair value hierarchy, which takes account of the origin of the input data used to meas-ure fair value and can be analysed as follows:

Level 1: The fair value of financial instruments traded on the active market is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly oc-curring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Rickmers Group is the current bid price. If the fair value is calculated on the basis of observable data, the instrument is included in level 1.


Level 2: level 2 inputs are inputs other than the quoted pric-es included within level 1 that are observable, either directly or indirectly. The fair value of financial instruments that are not traded on an active market (e.g. over-the-counter de-rivatives) is calculated on the basis of a specific valuation procedure (e.g. the DCF-method or the option price model). The fair value is estimated on the basis of the results of a valuation procedure that maximises the use of observable market data where it is available and rely as little as pos-sible on entity-specific estimates. Input factors also focus on existing conditions, such as interest rates and yield curves. If all significant inputs required to fairly value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more input factors are based on significant unobservable market data, the asset or liability is classified as a level 3 instrument.

Specific valuation techniques used to value financial instru-ments include:

• quoted market prices or dealer quotes for similar instruments;

• The fair value of interest rate swaps is calculated as the present value of the estimated future cashflows based on observable yield curves;

• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the bal-ance sheet;

• The DCF-method that is used for all other financial instruments.

The bond is assigned to level 1 because it is listed on the Frankfurt stock exchange’s open market, Entry Standard, included in the Prime Standard for corporate bonds and actively traded. The fair value is the bond price on the balance sheet date multiplied by the outstanding nominal amount.

Other financial debt and balance sheet items for which fair value is indicated (see Section 37.5.2) fall within level 2 of the fair value hierarchy. However, given the largely floating rate and the short remaining terms, the fair value cannot be calculated explicitly. The fair value of investment measured at amortised cost could not be determined with any degree of reliability. At the financial year-end dates, there is neither an active market for investments nor an intention to sell them.

Vessels measured at fair value in accordance with IFRS 5 (see Section 28) were measured on the basis of a DCF-method that reflects level 2 input. More information on the DCF-method applied can be found in Section 5.2 and in Section 19.


The following tables show the classification of derivative financial instruments in the levels of the fair value hier-archy at the respective financial year-end dates:

Valuation at fair value at 31 Dec. 2013

in € thousand level 1 level 2 level 3

ASSETS

Derivative financial instruments 0 0 0

Cashflow hedges 0 0 0

Other derivative financial instruments 0 0 0


Derivative financial instruments 0 78,035 0

Cashflow hedges 0 11,878 0

Other derivative financial instruments 0 66,157 0

Valuation at fair value at 31 Dec. 2012


ASSETS








Valuation at fair value at 1 Jan. 2012


ASSETS









38 Presentation of consolidated cash flow statement

Cashflow from operating activitiesThe Maritime Assets business segment generated the largest proportion of operating cashflow through charter income and shipmanagement fees. In financial year 2013, cashflow from operating activities amounted to € 194,524 thou-sand, a year-on-year fall of € 36,854 thousand (2012: € 231,378 thousand).

The downturn was due to the reduced operating cashflow

• of the Maritime Services segment mainly related to the reduction of the KG funds fleet change in working capital;

• of the Rickmers-linie segment largely attributable to lower freight rates and a slight decrease of freight vol-umes; and

• of the Maritime Assets segment due primarily to lower charter rates in case of charter renewals and currency translation effects;

• due to an increase in personnel and other operating expenses in the Corporate Center.

Cashflow from investing activitiesCashflow from investing activities amounted to € -1,598 thousand in 2013. The most significant effects include:

• Proceeds from loans granted of € 75,467 thousand largely resulting from shipyard reimbursements for cancelled vessels;

• Payments for vessels (in particular the acquisition of new vessels and investments in dry-docking) of € -43,105 thousand;

• loan repayments to other investments of € -24,823 thou-sand; and

• Payments for other investments (in particular for capital contributions and capital increases in associates and joint ventures) of € -14,156 thousand.

Financial year 2012 recorded a positive cashflow from in-vesting activities of € 17,276 thousand which was largely due to reimbursements from shipyards (€ 14,962 thousand).

Cashflow from financing activitiesCashflow from financing activities amounted to € -117,298 thousand in 2013 (2012: € -268,021 thousand).

The change is primarily due to:

• Proceeds from financial debt, mainly from the issue of a bond with a nominal value of € 225,000 thousand;

• Proceeds from the issue of equity instruments of € 41,748 thousand (a capital increase relating to non-controlling interests in Rickmers Maritime, Singapore);

• Increased repayments of financial debt of € -148,552 thousand, in particular attributable to special repay-ments and the repayment of shipyard loans that began in 2013;

• Reduced interest payments of € 10,880 thousand due to special repayments of loans in 2013 and changes in exchange rates.

NOTES TO THE CONSOlIDATED CASHFlOW STATEMENT


SEGMENT REPORTING

39 Presentation of reportable segments

The business activities of the Rickmers Group can be divided into three reportable segments: Maritime Assets, Maritime Services and Rickmers-linie. These reportable segments are largely independently organised and managed in line with the nature of the services provided.

In the business segment Maritime Assets, the Rickmers Group acts as an asset manager for its own and third-party vessels, and initiates and coordinates vessel projects, arranges financing, acquires, charters out and sells vessels. The Maritime Assets segment also comprises the vessel-owning companies of the Rickmers Group.

Through its Maritime Services business segment, the Rickmers Group provides ship management for own and third-party vessels, including technical and operational management, crewing, newbuild supervision and advisory and insurance-related services.

In the business segment Rickmers-linie, the Rickmers Group offers global liner services for breakbulk, heavy lift and project cargoes (such as the “Round-the-World Pearl String Service”) and individual sailings which comple-ment the liner services. The fleet operated in this segment consists of multi -purpose heavy lift vessels with onboard cranes.

The accounting standards that underlie the segment infor-mation of the Rickmers Group are based on IFRSs account-ing policies. Transactions between segments are at market prices.

According to IFRS 8, the Rickmers Group’s segment report-ing is oriented towards internal reporting to the Executive board, which is responsible for assessing the success of the segment and for allocating resources to it. Segment success is measured in line with its EbITDA. Revenues and the seg-ment profit or loss also serve as key performance indicators.

The assets and liabilities of the segments basically comprise all assets and liabilities. Assets and liabilities are allocated to the segment based on economic control.

The reconciliation column ‘Corporate Center’ comprises the business activities of the Group’s parent company Rickmers Holding and other intermediate holding companies that are not part of the Rickmers Group’s core business. Rickmers Holding provides internal, interdisciplinary services and acts as the management holding company for the Rickmers Group. Amongst other things, this means acquiring, hold-ing and selling investments in other shipping companies and related maritime businesses. Moreover, Rickmers Hold-ing manages financing activities for the business segments.

The reconciliation column “Consolidation” comprises the elimination of business relations between the segments.

The relevant segment figures are reconciled to the respec-tive consolidated figures (income statement, balance sheet, cashflow statement and EbITDA) in the tables below.


2013 in € thousand

Maritime Assets

Maritime Services

Rickmers-linie Total

Corporate Center

Consoli-dation Group

Revenues

Revenues from charter 365,816 0 627 366,443 0 -25,188 341,255

Revenues from shipmanagement 4,730 112,614 -5 117,339 0 -75,193 42,146

Revenues from freight 0 0 186,712 186,712 0 0 186,712

Other revenues 3,681 3,287 3,045 10,013 0 -1,517 8,496

Total revenues 374,227 115,901 190,379 680,507 0 -101,898 578,609

Generated by third parties 348,089 40,265 190,255 578,609 0 0 578,609

% of total revenues generated by third parties 93% 35% 100% 85% 0% 0% 100%

Generated by other segments 26,138 75,636 124 101,898 0 -101,898 0

% of total revenues generated by other segments 7% 65% 0% 15% 0% 100% 0%

Changes in inventories 157 0 0 157 0 0 157

Other operating income 14,492 16,264 4,347 35,103 14,396 -15,508 33,991

Cost of materials -111,336 -61,474 -199,637 -372,447 0 99,910 -272,537

Personnel expenses -4,435 -54,952 -14,995 -74,382 -14,185 95 -88,472

Amortisation, depreciation and impairment charges for intangible assets and property, plant and equipment -120,898 -206 -525 -121,629 -1,007 0 -122,636

Other operating expenses -31,342 -12,575 -9,681 -53,598 -19,953 17,323 -56,228

Results from investments accounted for using the equity method -2,470 78 -3,993 -6,385 1,141 0 -5,244

Other income from investments -5,160 35 89 -5,036 -31,926 32,100 -4,862

Financial result

Interest income 2,196 2,264 129 4,589 3,720 -6,056 2,253

Interest expenses -77,139 -715 -144 -77,998 -11,596 6,140 -83,454

Other financial income 33,027 0 0 33,027 0 0 33,027

Other financial expenses -21,365 0 0 -21,365 0 0 -21,365

-63,281 1,549 -15 -61,747 -7,876 84 -69,539

Earnings before tax on income 49,954 4,620 -34,031 20,543 -59,410 32,106 -6,761

Income tax 9,699 -537 -116 9,047 -768 0 8,279

Group profit or loss 59,653 4,083 -34,147 29,590 -60,178 32,106 1,518


2012 in € thousand

Maritime Assets

Maritime Services


Corporate Center


Revenues

Revenues from charter 376,032 0 1,495 377,527 0 -24,633 352,894

Revenues from ship management 7,831 147,798 155,629 0 -80,265 75,364

Revenues from freight 0 209,179 209,179 0 0 209,179

Other revenues 6,967 4,060 2,043 13,070 0 -2,510 10,560

Total revenues 390,830 151,858 212,717 755,405 0 -107,408 647,997

Generated by third parties 363,967 71,448 212,583 647,997 0 0 647,997

% of total revenues generated by third parties 93% 47% 100% 86% 0% 0% 100%

Generated by other segments 26,864 80,410 134 107,408 0 -107,408 0

% of total revenues generated by other segments 7% 53% 0% 14% 0% 100% 0%

Changes in inventories -157 0 0 -157 0 0 -157

Other operating income 48,984 6,970 3,606 59,560 7,778 -8,005 59,333

Cost of materials -116,610 -66,227 -214,785 -397,622 6 109,722 -287,894

Personnel expenses -4,353 -69,135 -12,655 -86,143 -9,448 80 -95,511

Amortisation, depreciation and impairment charges for intangible assets and property, plant and equipment -114,078 -195 -484 -114,757 -505 0 -115,262

Other operating expenses -20,389 -18,555 -8,526 -47,470 -10,121 5,543 -52,048

Results from investments accounted for using the equity method -1,058 94 883 -81 1,187 0 1,106

Other income from investments -2,906 -39 749 -2,196 2,981 -2,909 -2,124

Financial result

Interest income 3,062 1,148 156 4,366 1,721 -3,375 2,712

Interest expenses -99,040 -406 -225 -99,671 -221 3,388 -96,504

Other financial income 10,940 0 0 10,940 0 0 10,940

Other financial expenses -59,458 0 0 -59,458 0 0 -59,458

-144,496 742 -69 -143,823 1,500 13 -142,310

Earnings before tax on income 35,767 5,513 -18,564 22,716 -6,622 -2,964 13,130

Income tax -1,831 -474 -135 -2,440 13 0 -2,426

Group profit or loss 33,936 5,039 -18,699 20,276 -6,609 -2,964 10,704


31 Dec. 2013in € thousand

Maritime Assets

Maritime Services


Corporate Center


ASSETS

Non-current assets

Intangible assets 0 1 412 413 2,031 0 2,444

Vessels 2,242,196 0 0 2,242,196 0 -162 2,242,034

Other property, plant and equipment 231 258 1,266 1,755 1,165 3 2,923

Investments accounted for using the equity method 12,487 652 3,196 16,335 1,197 0 17,533

Other financial assets 7,106 33 102 7,241 301,623 -300,857 8,008

Trade and other receivables 0 0 133 133 0 0 133

Deferred tax assets 1,423 348 471 2,242 0 0 2,242

2,263,443 1,292 5,580 2,270,315 306,016 -301,016 2,275,317

Current assets

Inventories 5,986 1,040 10,249 17,275 0 0 17,275

Derivative financial instruments 0 0 0 0 0 0 0

Other financial assets 42,050 77,968 10,701 130,719 103,269 -215,737 18,251

Trade and other receivables 11,034 19,181 13,962 44,177 3,043 -15,106 32,114

Other non-financial assets 2,649 2,868 2,290 7,807 1,124 -375 8,556

Current income tax assets 1,033 208 96 1,337 0 0 1,337

Cash and cash equivalents 79,287 10,841 3,084 93,212 51,576 0 144,788

142,039 112,106 40,382 294,527 159,012 -231,215 222,322

Assets held for sale 26,695 0 0 26,695 0 0 26,695

Assets 2,432,177 113,398 45,962 2,591,537 465,028 -532,231 2,524,334



Maritime Assets

Maritime Services


Corporate Center


lIAbIlITIES


Provisions for pensions and similar obligations 0 0 1,703 1,703 0 0 1,703

Other provisions 0 8 0 8 0 0 8

Derivative financial instruments 76,932 0 0 76,932 0 0 76,932

Financial debt 1,074,319 0 0 1,074,319 216,979 -25 1,291,274

Trade and other payables 2,111 0 0 2,111 72 0 2,183

Deferred tax liabilities 11,458 0 0 11,458 701 0 12,159

1,164,820 8 1,703 1,166,531 217,752 -25 1,384,258

Current liabilities

Other provisions 7,477 969 2,214 10,660 831 -6 11,485

Derivative financial instruments 1,103 0 1,103 0 0 1,103

Financial debt 626,292 7,680 3,912 637,884 67,213 -215,714 489,383

Trade and other payables 17,736 20,717 22,227 60,680 11,525 -14,982 57,223

Non-financial liabilities 5,390 791 186 6,368 2 -495 5,875

Current income tax liabilities 3,913 1,062 98 5,073 485 0 5,559

661,911 31,219 28,638 721,768 80,056 -231,197 570,628

Liabilities 1,826,731 31,227 30,341 1,888,299 297,808 -231,222 1,954,885


31 Dec 2012in € thousand

Maritime Assets

Maritime Services


Corporate Center


ASSETS

Non-current assets

Intangible assets 1 89 331 421 2,491 0 2,912

Vessels 2,438,453 0 0 2,438,453 0 -162 2,438,291

Other property, plant and equipment 367 386 1,637 2,390 1,081 3 3,474


Other financial assets 12,616 3,144 113 15,873 327,083 -328,599 14,357


Deferred tax assets 803 565 472 1,840 78 0 1,918

2,459,076 4,748 6,557 2,470,381 331,970 -328,758 2,473,593

Current assets

Inventories 5,597 1,703 8,979 16,279 0 0 16,279


Other financial assets 102,140 79,475 10,050 191,665 622 -121,096 71,191


Other non-financial assets 2,463 3,537 1,748 7,748 1,145 -295 8,598

Current income tax assets 235 0 1 236 0 0 236


181,873 106,298 30,629 318,800 10,362 -127,802 201,359

Assets held for sale 0 0 0 0 0 0 0

Assets 2,640,949 111,046 37,186 2,789,181 342,332 -456,560 2,674,953



Maritime Assets

Maritime Services


Corporate Center


lIAbIlITIES





Financial debt 1,669,692 0 0 1,669,692 0 -3,114 1,666,578



1,799,524 6 1,777 1,801,307 0 -3,114 1,798,193

Current liabilities

Other provisions 3,933 882 -721 4,094 446 -4 4,540


Financial debt 288,997 1,028 950 290,975 60,228 -121,089 230,113


Non-financial liabilities 5,577 1,667 191 7,435 295 -416 7,314

Current income tax liabilities 16,179 1,088 60 17,327 503 0 17,831

332,349 30,718 21,079 384,146 66,735 -127,800 323,086

Liabilities 2,131,873 30,724 22,856 2,185,453 66,735 -130,913 2,121,279


1 Jan 2012in € thousand

Maritime Assets

Maritime Services


Corporate Center


ASSETS

Non-current assets

Intangible assets 13 5 62 80 465 0 545

Vessels 2,614,134 0 2,614,134 0 -162 2,613,971

Other property, plant and equipment 526 424 1,873 2,823 549 0 3,373


Other financial assets 18,846 61 187 19,094 294,508 -291,370 22,232


Deferred tax assets 204 46 463 713 6 25 744

2,641,617 1,105 10,483 2,653,205 296,702 -291,507 2,658,399

Current assets

Inventories 5,857 1,857 10,128 17,842 0 0 17,842


Other financial assets 55,913 65,790 5,812 127,515 0 -75,492 52,023


Other non-financial assets 2,545 2,579 1,691 6,815 106 -353 6,570

Current income tax assets 0 0 0 0 0


153,024 98,220 36,271 287,515 5,724 -81,906 211,334

Assets held for sale 0 0 0 0 0 0 0

Assets 2,794,641 99,325 46,754 2,940,720 302,426 -373,413 2,869,733


1 Jan 2012in € thousand

Maritime Assets

Maritime Services


Corporate Center


lIAbIlITIES





Financial debt 1,864,573 0 0 1,864,573 0 0 1,864,573



1,954,291 0 1,560 1,955,851 0 0 1,955,851

Current liabilities

Other provisions 6,160 525 -641 6,044 593 0 6,637


Financial debt 277,684 0 3,890 281,574 4,001 -75,492 210,083


Non-financial liabilities 4,365 1,284 197 5,846 199 -381 5,664

Current income tax liabilities 16,121 382 153 16,656 250 0 16,906

370,764 24,311 27,807 422,882 9,124 -81,984 350,022

Liabilities 2,325,055 24,311 29,367 2,378,733 9,124 -81,984 2,305,873


2013in € thousand

Maritime Assets

Maritime Services


Corporate Center



Group profit or loss 59,653 4,083 -34,147 29,589 -60,178 32,106 1,517

Income tax -9,699 537 115 -9,047 768 0 -8,279

Depreciation, amortisation, impairment losses and write-ups 127,315 209 536 128,060 33,107 -32,100 129,067

Net interest 74,942 -1,549 15 73,408 7,876 -84 81,200

Financial result from swaps (held for trading) 20,817 20,817 0 20,817

Gain/loss on sale of non-current assets 16 18 -21 13 1 0 14

Results from investments accounted for using the equity method 2,470 -78 3,993 6,385 -1,141 0 5,244

Other non-cash items -39,274 14 -197 -39,457 2,250 0 -37,207

Dividends received 1,267 111 579 1,957 1,355 0 3,312

Changes in provisions for pensions and similar obligations -75 -75 0 -75

Changes in other assets and liabilities 6,050 -5,902 2,751 2,899 16 -468 2,447

Income tax paid -2,943 -448 -134 -3,525 -8 0 -3,533

Cashflow from operating activities 240,614 -3,005 -26,585 211,024 -15,954 -546 194,524


Purchase of intangible assets -2 -217 -219 -125 0 -344

Purchase of vessels -43,105 -43,105 0 -43,105

Purchase of other property, plant and equipment -21 -38 -106 -165 -450 0 -615

Acquisition of other financial assets -10,316 0 -3,840 -14,156 -3,979 3,979 -14,156

Proceeds from disposal of intangible assets and property, plant and equipment 25 23 30 78 0 0 78

Proceeds from disposal of subsidiaries and other business units -2 -2 0 -2

Proceeds from disposal of other financial assets 452 48 24 524 2,653 -2,653 524

Cash advances and loans made -13,783 -8,845 -2,733 -25,361 -158,753 159,291 -24,823

Cash receipts from advances and loans made 69,397 10,452 2,098 81,947 11,167 -17,647 75,467

Interest received 5,819 1,894 121 7,834 2,033 -4,489 5,378

Cashflow from investing activities 8,468 3,532 -4,625 7,375 -147,454 138,481 -1,598


2013in € thousand

Maritime Assets

Maritime Services


Corporate Center



Proceeds from issuing equity instruments and capital increase 41,723 4,004 0 45,728 0 -3,979 41,748

Payments for transaction costs on equity proceeds -1,433 0 0 -1,433 0 0 -1,433

Dividends paid -7,805 0 0 -7,805 -5,229 0 -13,035

Other payments to owners and minority shareholders 0 -2,653 0 -2,653 0 2,653 0

Proceeds from financial debt 106,964 6,676 33,180 146,819 275,579 -159,135 263,263

Payments for transaction costs on debt proceeds -1,355 0 0 -1,355 -8,455 0 -9,810

Repayments of financial debt -274,869 -77 -944 -275,890 -53,265 18,005 -311,150

Proceeds from interest related derivatives 0 0 0 0 0 0

Payments for interest related derivatives 0 0 0 0 0 0

Interest paid -90,749 -509 -144 -91,401 -2 4,522 -86,882

Cashflow from financing activities -227,524 7,441 32,092 -187,991 208,628 -137,934 -117,298

Change in cash and cash equivalents 21,557 7,968 882 30,407 45,221 0 75,628

Currency translation effects on cash and cash equivalents -3,789 -437 158 -4,069 1,165 0 -2,904

Cash and cash equivalents at beginning of period 61,519 3,310 2,044 66,874 5,190 0 72,064

Cash and cash equivalents at end of period 79,287 10,841 3,084 93,212 51,576 0 144,788


2012in € thousand

Maritime Assets

Maritime Services


Corporate Center



Group profit or loss 33,936 5,039 -18,699 20,276 -6,609 -2,964 10,704

Income tax 1,831 474 135 2,440 -14 0 2,426

Depreciation, amortisation, impairment losses and write-ups 117,844 234 567 118,645 505 0 119,150

Net interest 95,978 -742 69 95,305 -1,500 -13 93,793

Financial result from swaps (held for trading) 11,506 11,506 0 11,506

Gain/loss on sale of non-current assets -188 5 -852 -1,035 0 -3 -1,038

Results from investments accounted for using the equity method 1,058 -94 -883 81 -1,187 0 -1,106

Other non-cash items 1,160 -345 -9 806 -2,976 2,756 587

Dividends received 648 56 636 1,340 4,105 -2,909 2,537

Changes in provisions for pensions and similar obligations 0 227 227 0 227

Changes in other assets and liabilities -7,383 4,076 -2,516 -5,824 1,374 109 -4,344

Income tax paid -2,343 -212 -255 -2,809 -254 0 -3,064

Cashflow from operating activities 254,047 8,491 -21,580 240,958 -6,556 -3,024 231,378


Purchase of intangible assets 0 0 -313 -313 -2,245 0 -2,558

Purchase of vessels -4,384 0 0 -4,384 0 -4,384

Purchase of other property, plant and equipment -25 -237 -242 -504 -820 17 -1,307

Acquisition of subsidiaries and other business units -137 60 -77 0 -77

Acquisition of other financial assets -104 -25 -205 -334 -34,954 34,954 -334

Proceeds from disposal of intangible assets and property, plant and equipment 14,950 1 28 14,979 1 -17 14,963

Proceeds from disposal of other financial assets 886 0 5,201 6,087 2,279 -2,279 6,087

Cash advances and loans made -33,202 -20,251 -7,509 -60,962 -622 60,470 -1,114

Cash receipts from advances and loans made 8,555 1,409 3,284 13,248 -8,558 4,690

Interest received 1,660 1,148 156 2,964 1,721 -3,375 1,310

Cashflow from investing activities -11,801 -17,895 400 -29,296 -34,640 81,212 17,276


2012in € thousand

Maritime Assets

Maritime Services


Corporate Center



Proceeds from issuing equity instruments and capital increase 16,126 3,409 15,419 34,954 0 -34,954 0

Dividends paid -8,564 -2 0 -8,566 -10,982 2,909 -16,639

Other payments to owners and minority shareholders 0 -2,229 0 -2,229 0 2,229 0

Cash payments from changes in proportional ownership of subsidiaries 5 0 0 5 -5 0 0

Proceeds from financial debt 2,293 2,543 964 5,800 63,495 -60,318 8,977

Repayments of financial debt -159,741 0 -3,904 -163,646 -7,511 8,558 -162,598

Interest paid -100,294 -406 -225 -100,926 -224 3,388 -97,761

Cashflow from financing activities -250,176 3,315 12,254 -234,607 44,773 -78,188 -268,021

Change in cash and cash equivalents -7,930 -6,089 -8,926 -22,945 3,578 0 -19,367

Currency translation effects on cash and cash equivalents -1,594 -7 427 -1,173 -526 0 -1,699

Cash and cash equivalents at beginning of period 71,044 9,406 10,543 90,992 2,138 0 93,130

Cash and cash equivalents at end of period 61,519 3,310 2,044 66,874 5,190 0 72,064

The following table shows the reconciliation from aggre-gate segment EbITDA:


Maritime Assets 240,549 298,107

Maritime Services 3,280 5,005

Rickmers-linie -33,480 -17,929

Total 210,349 285,184

Corporate Center -18,426 -7,617

Consolidation -77 -2,972

Group EBITDA 191,845 274,595

Depreciation 12 -122,635 -115,262

Interest income/expenses 16 -81,200 -93,793

Other effects on EbT 16 5,230 -52,406

Group EBT -6,761 13,130

Income tax 17 8,279 -2,426



The fall in EbITDA for the Corporate Center of € 10,809 thou-sand is mainly attributable to increased personnel ex penses, reduced internal income from investments and the rise in other operating expenses.

More details on the effects of the reconciliation of Group EDITDA to Group EbT can be found in Section 12, 16 and 17.

External revenue by region is based on the customer’s country of origin and is presented in the table below:


Germany 66,155 112,119

Europe excluding Germany 243,320 249,372

Outside Europe 269,134 286,506

Total 578,609 647,997

External revenues attributable to countries within Europe chiefly relate to Denmark with revenues amounting to €136,948 thousand (2012: € 142,684 thousand). Revenues attributable to countries outside Europe were largely generated in South Korea (2013: € 75,495 thousand; 2012: € 76,115 thousand), in Japan (2013: € 52,182 thousand; 2012: € 66,683 thousand) and the uSA (2013: € 40,745 thousand; 2012: € 36,682 thousand).

In 2013, at least 10 percent of the Rickmers Group revenues were achieved with one customer (2012: with one custom-er) (2013: € 117,019 thousand; 2012: € 137,334 thousand). In 2013 and 2012, revenues with this customer relate to the Maritime Assets and Maritime Services segments.

The regional distribution of balance sheet items is restrict-ed to the presentation of intangible assets and property, plant and equipment and is shown in the table below:

in € thousand 2013 2012 2011

Germany 203,784 218,071 221,983

Europe excluding Germany 1,403,415 1,525,903 1,653,765

Outside Europe 640,202 700,704 742,141

Total 2,247,401 2,444,678 2,617,889

At 31 December 2013, the Isle of Man accounted for € 1,352,540 thousand of non-current assets (31 Dec. 2012: € 1,467,239 thousand; 1 Jan. 2012: € 1,591,195 thou-sand) and Singapore € 636,407 thousand (31 Dec. 2012: € 696,688 thousand; 1 Jan. 2012: € 738,149 thousand).


40 Capital management

The Rickmers Group is continually improving its capital structure to safeguard the Group’s ability to continue going concern and to provide financial stability.

A key performance indicator within the capital manage-ment is the relationship between equity and the balance sheet total (equity ratio). At the balance sheet date, the equity ratio amounted to 22.6 percent (31 Dec. 2012: 20.7 percent; 1 Jan. 2012: 19.7 percent). The Rickmers Group operates within the minimum equity ratio contractually agreed with the banks for loans.

besides the equity ratio, net debt is also monitored as part of capital management. This is the sum of bank liabilities plus bond liabilities minus cash and cash equivalents, and at 31 December 2013 amounted to € 1,575 million (31 Dec. 2012: € 1,749 million; 1 Jan. 2012: € 1,907 million).

In 2013, the Rickmers Group undertook the following steps to optimise its capital structure:

• Increasing capital at Rickmers Maritime, Singapore, in May 2013 at the Singapore Stock Exchange. The capital increase was used to make special repayments of bank loans;

• Issuing a bond from Rickmers Holding GmbH & Cie. KG in June 2013. by successfully accessing debt capital mar-kets, the Rickmers Group has managed to tap another source of capital that may be used in the future to fur-ther enhance its capital structure;

• Conducting ongoing negotiations with banks aiming to adapt the financing structure to the new capital struc-ture of the Rickmers Group following the successful plac-ing of the bond;

• Tapping long-term growth opportunities by establishing a strategic joint venture with an external financial inves-tor in September 2013;

• Starting a Medium Term Note (MTN) programme at Rickmers Maritime, Singapore, in November 2013, with the aim of raising SGD 300 million to further enhance capital structure.

OTHER DISClOSuRES

41 Other financial liabilities

At 31 December 2013, other financial liabilities to third par-ties amounted to € 15,896 thousand, which was comprised as follows:

in € thousand

liabilities from the refund of contributions 15,118

Miscellaneous financial liabilities 778

Total 15,896

At 31 December 2012, other financial liabilities to third par-ties amounted to € 17,055 thousand, which comprised the following:

in € thousand


Miscellaneous financial liabilities 1,153

Total 17,055

At 1 January 2012, other financial liabilities to third par-ties amounted to € 101,629 thousand, which comprised the following:

in € thousand

Purchase commitments 42,982

Payment obligations from partners’ capital 43,987


Miscellaneous financial liabilities 481

Total 101,629

Moreover, the Rickmers Group has obligations from acting as lessee in operating lease agreements. Details of this can be found in Note 42.2.


42 Leasing

42.1 Lessor – operating leases

Future minimum lease payments to be received from op-erating lease agreements amount to:

in € thousand31 Dec.

201331 Dec.

2012

Minimum lease payments

payable within 1 year 310,299 334,432

payable within 2 to 5 years 887,242 1,055,868

payable in more than 5 years 260,170 457,899

Total of minimum lease payments 1,457,711 1,848,199

Of the Group’s 59 own vessels, 48 are chartered out exter-nally (31 Dec. 2012: 42). At 31 December 2013, the gross book value of vessels chartered out amounts to € 2,362,544 thou-sand (31 Dec. 2012: € 2,435,829 thousand), accumulated depreciation amounts to € 292,170 thousand (31 Dec. 2012: € 208,895 thousand). Depreciation in the period under re-view amounts to € 97,916 thousand (2012: € 99,931 thou-sand). At 31 December 2013, the accumulated impair-ment losses for the vessels amount to € 48,077 thousand (31 Dec. 2012: € 40,437 thousand). The current period in-cluded an impairment loss of € 11,237 thousand (31 Dec. 2012: € 3,753 thousand). In addition, there were reversals of impairment of € 3,767 thousand at 31 December 2013 (31 Dec. 2012: € 1,774 thousand). No contingent rents were recognised in the income statement in 2013.

42.2 Lessee – operating leases

The table below shows the future minimum lease pay-ments from operating lease agreements:

in € thousand31 Dec.

201331 Dec.

2012

Minimum lease payments

payable within 1 year 30,988 20,419

payable within 2 to 5 years 52,364 12,001

payable in more than 5 years 9,794 9,172

Total of minimum lease payments 93,146 41,592

lease expenses from operating lease agreements comprise the following:


Minimum lease payments 51,312 21,509

Contingent lease payments 51 96

Total lease expenses 51,363 21,605

The Rickmers Group is the lessee in operating lease agree-ments relating to vessels and properties.

43 Contingent assets and liabilities

The management estimates the likelihood of guarantees being utilised as remote.


Contingent liabilities

Guarantees made 4,352 5,151 2,700

Total 4,352 5,151 2,700


44 Related parties

besides the subsidiaries included in the consolidated financial statements, in conducting its business affairs the Rickmers Group is also in direct and indirect relationship with related parties.

Verwaltung Rickmers Holding GmbH, Hamburg, is the per-sonally liable partner of Rickmers Holding GmbH & Cie. KG – the parent company of the Rickmers Group. Verwaltung Rickmers Holding GmbH is the executive body of the com-pany. The Executive board of the company consists of:

• bertram R.C. Rickmers, shipowner, Hamburg• Ronald D. Widdows, businessman, Singapore

• Dr. Ignace Van Meenen, lawyer, Hamburg• Prof. Dr. Mark-Ken Erdmann, businessman, Hamburg/

Singapore

The sole limited partner of Rickmers Holding GmbH & Cie. KG is bertram R.C. Rickmers. He controls the Rickmers Group.

Rickmers Holding GmbH & Cie. KG has an Advisory board. In 2013 it comprised:

• bertram R.C. Rickmers, shipowner, Hamburg• Claus-Günther budelmann, businessman, Hamburg• Jost Hellmann, businessman, Hamburg• Flemming R. Jacobs, businessman, Cobham, uK

The table below lists the transactions with related parties (without management remuneration):

Supplies and services rendered and other income

Supplies and services received and other expenses

in € thousand 2013 2012 2013 2012

General partners 1,469 710 2,833 2,880

Joint arrangements 151 93 247 109

Associates 1,568 1,654 500 3,357

Non-consolidated subsidiaries 2 2 15 48

Management 0 0 1,075 1,843

Total 3,190 2,459 4,670 8,237

The transactions described above are broken down as follows:

Supplies and services rendered and other income

Supplies and services received and other expenses

in € thousand 2013 2012 2013 2012

Services 733 409 4,455 5,094

Goods 1,533 1,979 215 3,143

Financing 924 71 0 0

Total 3,190 2,459 4,670 8,237


Outstanding balances with related parties developed as follows:

Receivables as at Liabilities as at

in € thousand 31 Dec. 2013 31 Dec. 2012 1 Jan. 2012 31 Dec. 2013 31 Dec. 2012 1 Jan. 2012

General partners 16,116 2,772 3,401 14,235 5 671

Joint arrangements 140 149 240 2 13 10

Associates 279 124 441 8 65 524

Non-consolidated subsidiaries 2 2 2 24 15 8

Total 16,537 3,047 4,084 14,269 98 1,213

All transactions within the scope of operating activities with related parties were conducted on an arm’s length basis at standard market terms and conditions.

Management remuneration in accordance with IAS 24 includes remuneration of the Executive board and the Extended board Committee of the Rickmers Group. The management was remunerated as follows:


Short-term employee benefits 6,967 4,350

Post-employment benefits 6 62

Total 6,973 4,412

Post-employment benefits refer to additions to pension provisions. At 31 December 2013, pension provisions relating to management amounted to € 218 thousand (31 Dec. 2012: € 212 thousand; 1 Jan. 2012: € 150 thousand). Remuneration of the Advisory board in the 2013 financial year amounted to € 46 thousand (2012: € 46 thousand). Details of the total re-muneration paid to the management were not disclosed as bertram R.C. Rickmers, the sole limited partner of Rickmers Holding GmbH & Cie. KG, did not receive any remuneration.

45 Events after the balance sheet date

In January 2014, a total of eight vessels were transferred to the joint venture with funds affiliated with Apollo Global Management, LLC. Of these, five vessels recognised as “held for sale” at 31 December 2013, were transferred from the ownership of the Rickmers Group to the joint venture effective as of January 2014. No impairments were recog-nised for the vessels held for sale.

On 7 March 2014, Rickmers Holding GmbH & Cie. KG in-creased its corporate bond by a further € 25 million. The increase is subject to the same conditions that apply to the corporate bond placed at Frankfurt stock exchange’s Prime Standard in 2013 (term until 11 June 2018, coupon: 8.875 percent).

As part of the annual review of ratings, Creditreform placed the addendum ‘Watch’ to the rating on 10 March 2014, an-nouncing the detailed monitoring of the rating. The ‘bb’ rating is scheduled for review on 7 May 2014.

Rickmers Trust Management Pte. ltd., trust manager of Rickmers Maritime, Singapore, issued a press release dated 17 January 2014 to acknowledge that funds raised through the rights issue were, as announced, in part to repay bank loans. As a result, a further uSD 5.8 million was paid to financing banks.


46 Group of consolidated companies according to §313 (2) HGB

No. Name and location of the companyHolding

in %Investment

through

Parent company

1 Rickmers Holding GmbH & Cie. KG, Hamburg N/A N/A

Affiliated, consolidated companies

2 Altona Maritime ltd., Douglas/Isle of Man 100.0 58

3 Andreas Navigation ltd., Douglas/Isle of Man 100.0 58

4 ARCTIC Shipping GmbH, Hamburg 100.0 76

5 ATlANTIC Gesellschaft zur Vermittlung internationaler Investitionen mbH & Co. KG, Hamburg 80.0 1

6 ATlANTIC Structured Finance GmbH & Cie. KG, Hamburg 100.0 5

7 baldrine Navigation ltd., Douglas/Isle of Man 100.0 58

8 baldwin Navigation ltd., Douglas/Isle of Man 100.0 58

9 ballacraine Navigation ltd., Douglas/Isle of Man 100.0 58

10 barrule Navigation ltd., Douglas/Isle of Man 100.0 58

11 Careway Shipping Co. ltd., limassol/Cyprus 100.0 28

12 Chasms Navigation ltd., Douglas/Isle of Man 100.0 58

13 Clan Maritime & yachting ltd., Sliema/Malta 100.0 58

14 Clan Navigation ltd., Singapore 100.0 74

15 Cornaa Navigation ltd., Douglas/Isle of Man 100.0 58

16 Cregneash Navigation ltd., Douglas/Isle of Man 100.0 58

17 Curragh Navigation ltd., Douglas/Isle of Man 100.0 58

18 Dalby Navigation ltd., Douglas/Isle of Man 100.0 58

19 Ebba Navigation ltd., Singapore 100.0 74

20 Einundvierzigste Reederei Alsterufer 26 GmbH & Cie. KG, Hamburg 100.0 76

21 Erin Navigation ltd., Douglas/Isle of Man 100.0 58

22 Erwin Rickmers Navigation ltd., Singapore 100.0 74

23 ESSE Expert Shipping Service GmbH & Co. KG, Hamburg 100.0 1

24 EVT Elbe Vermögens Treuhand GmbH, Hamburg 80.0 69

25 Frimley Assets S.A., Panama City/Panama 100.0 28

26 Fünfte Reederei Neumühlen 19 GmbH & Cie. KG, Hamburg 100.0 76

27 Garff Navigation ltd., Douglas/Isle of Man 100.0 58

28 GlObAl Investments ltd., limassol/Cyprus 100.0 29

29 GlObAl Management ltd., limassol/Cyprus 100.0 1

30 Greeba Navigation ltd., Douglas/Isle of Man 100.0 58

31 Groudle Navigation ltd., Douglas/Isle of Man 100.0 58

32 Helen Navigation ltd., Douglas/Isle of Man 100.0 58

33 Henry II Navigation ltd., Singapore 100.0 74

34 Hillberry Navigation ltd., Douglas/Isle of Man 100.0 58

35 India Navigation ltd., Singapore 100.0 74

36 Island Marine Service Co. ltd., Douglas/Isle of Man 100.0 1

37 JACOb Rickmers Schifffahrtsgesellschaft mbH & Cie. KG, Hamburg 100.0 76

38 Kaethe Navigation ltd., Singapore 100.0 74

39 laranna Rickmers Navigation ltd., Singapore 100.0 74

40 lezayre Navigation ltd., Douglas/Isle of Man 100.0 58

41 lonan Navigation ltd., Douglas/Isle of Man 100.0 58

42 lonergan Overseas Inc., Panama City/Panama 100.0 28



in %Investment

through

43 Maja Rickmers Navigation limited, Singapore 100.0 74

44 Malew Navigation ltd., Douglas/Isle of Man 100.0 58

45 Marown Navigation ltd., Douglas/Isle of Man 100.0 58

46 Marte Rickmers Navigation ltd., Singapore 100.0 74

47 MCC Marine Consulting & Contracting GmbH & Cie. KG, Hamburg 100.0 1

48 Moni II Navigation ltd., Singapore 100.0 74

49 Mooragh Navigation ltd., Douglas/Isle of Man 100.0 58

50 MS “GOTlAND” Schifffahrtsgesellschaft mbH & Co. KG, lübeck 64.3 76

51 MS “lOllAND” Schifffahrtsgesellschaft mbH & Co. KG, lübeck 64.3 76

52 Murrays Navigation ltd., Douglas/Isle of Man 100.0 58

53 Olympia II Navigation ltd., Singapore 100.0 74

54 Onchan Navigation ltd., Douglas/Isle of Man 100.0 58

55 Orrisdale Navigation ltd., Douglas/Isle of Man 100.0 58

56 Peel Navigation ltd., Douglas/Isle of Man 100.0 58

57 Pingel Navigation ltd., Singapore 100.0 74

58 Polaris Shipmanagement Co. ltd., Douglas/Isle of Man 100.0 77

59 PSb Project Services beteiligungsgesellschaft mbH, Hamburg 100.0 82

60 Ramsey Navigation ltd., Douglas/Isle of Man 100.0 58

61 Reederei ANTARCTICO berulan GmbH & Co. KG, Hamburg 96. 1 76

62 Regaby Navigation ltd., Douglas/Isle of Man 100.0 58

63 Richard II Navigation ltd., Singapore 100.0 74

64 Rickmers (Korea) Inc., Seoul/South Korea 100.0 87

65 Rickmers 1. Terminal beteiligungs GmbH, Hamburg 100.0 82

66 Rickmers 2. Terminal beteiligungs GmbH, Hamburg 100.0 82

67 Rickmers Asia Pte. ltd., Singapore 100.0 1

68 Rickmers Crewing GmbH, Hamburg 100.0 76

69 Rickmers Dritte beteiligungs-Holding GmbH, Hamburg 100.0 1

70 Rickmers First Invest GmbH, Hamburg 100.0 1

71 Rickmers Genoa Schifffahrtsgesellschaft mbH & Cie. KG, Hamburg 100.0 76

72 Rickmers Japan Inc., Tokyo/Japan 100.0 87

73 Rickmers Marine Agency Romania S.R.l., Constanta/Romania 100.0 29

74 Rickmers Maritime, Singapore 33.1 58 + 77

75 Rickmers Reederei (Singapore) Pte. ltd., Singapore 100.0 67

76 Rickmers Reederei GmbH & Cie. KG, Hamburg 100.0 1

77 Rickmers Second Invest GmbH, Hamburg 100.0 1

78 Rickmers Shipinvest GmbH & Cie. KG, Hamburg 100.0 76

79 Rickmers Shipmanagement (Singapore) Pte. ltd., Singapore 100.0 70

80 Rickmers Shipmanagement GmbH & Cie. KG, Hamburg 100.0 1

81 Rickmers Shipping (Shanghai) Co. ltd., Shanghai/People’s Republic of China 80.0 29

82 Rickmers Terminal Holding GmbH, Hamburg 100.0 69

83 Rickmers Trust Management Pte. ltd., Singapore 100.0 70

84 Rickmers-linie (America) Inc., Houston/uSA 100.0 87

85 Rickmers-linie (Singapore) Pte. ltd., Singapore 100.0 87

86 Rickmers-linie belgium N.V., Antwerp/belgium 100.0 87

87 Rickmers-linie GmbH & Cie. KG, Hamburg 100.0 1

88 RlA Cargo Services Inc., Delaware/uSA 100.0 84

89 Ronague Navigation ltd., Douglas/Isle of Man 100.0 58

90 Sabine Rickmers Navigation ltd., Singapore 100.0 74

91 Santon Navigation ltd., Douglas/Isle of Man 100.0 58

92 Sartfield Navigation ltd., Douglas/Isle of Man 100.0 58



in %Investment

through

93 Sechste Reederei Neumühlen 19 GmbH & Cie. KG, Hamburg 100.0 76

94 Seven Seas Shipping GmbH & Co. KG, Hamburg 100.0 76

95 Siebte Reederei Neumühlen 19 GmbH & Cie. KG, Hamburg 100.0 76

96 Smeale Navigation ltd., Douglas/Isle of Man 100.0 58

97 Soderick Navigation ltd., Douglas/Isle of Man 100.0 58

98 Sui An Navigation ltd., Singapore 100.0 74

99 Sulby Navigation ltd., Douglas/Isle of Man 100.0 58

100 Surby Navigation ltd., Douglas/Isle of Man 100.0 58

101 Tynwald Navigation ltd., Douglas/Isle of Man 100.0 58

102 Verwaltung Rickmers-linie GmbH, Hamburg 100.0 1

103 Vicki Rickmers Navigation ltd., Singapore 100.0 74

104 Wilbert Shipping Co. ltd., limassol/Cyprus 100.0 28

105 Willric Shipping Co. ltd., limassol/Cyprus 100.0 28

106 Wilmore Shipping Co. ltd., limassol/Cyprus 100.0 28

Joint ventures

107 A.R. Maritime Investments Pte. ltd., Singapore 10.0 75

108 Harper Petersen & Co. (GmbH & Cie. KG), Hamburg 50.0 1

109 Maersk-Rickmers u.S. Flag Project Carrier llC, Delaware/uSA 50.0 88

Associates

110 Colombo International Nautical and Engineering College (Pvt.) ltd., Colombo/Sri lanka 12.5 29

111 Madryn Holding Inc., Manila/The Philippines 40.0 29

112 MS “PATRICIA RICKMERS” Reederei Rickmers GmbH & Cie. KG, Hamburg 40.4 76

113 Rickmers Marine Agency Philippines Inc., Manila/The Philippines 25.0 29

114 Wallmann & Co. (GmbH & Co.), Hamburg 25.1 65

Affiliated, non-consolidated companies

115 AAA Capital Game Production and Sales GmbH & Co. Fonds Nr. 2 KG, Grünwald 95.9 24

116 AAT ATlANTIC Australien Treuhand GmbH, Hamburg 100.0 5

117 Anzac Geschäftsführungsgesellschaft mbH & Co. KG, Göppingen 100.0 5

118 Anzac Verwaltungsgesellschaft mbH, Göppingen 100.0 5

119 ATl Australien 1 GmbH, Hamburg 100.0 5

120 ATlANTIC Australien Geschäftsführung GmbH, Hamburg 100.0 5

121 ATlANTIC uS INVESTMENT Inc., New york/uSA 100.0 5

122EAR Verwaltungsgesellschaft mbH, Hamburg (formerly: ARuNI RICKMERS Schifffahrtsgesellschaft mbH) 100.0 76

123 EASySHIP Gesellschaft zur Vermittlung maritimer Investitionen mbH, Hamburg 100.0 5

124 EASySHIP Verwaltungsgesellschaft mbH, Hamburg 100.0 5

125EJR Verwaltungsgesellschaft mbH, Hamburg(formerly: Verwaltung JACKy RICKMERS Schifffahrtsgesellschaft mbH, Hamburg) 100.0 76

126ESNR Verwaltungsgesellschaft mbH, Hamburg (formerly: Verwaltung SAylEMOON und NINA RICKMERS Schifffahrtsgesellschaft mbH, Hamburg) 100.0 76

127 Geschäftsführung ATlANTIC Deutschlandfonds 1 mbH, Hamburg 100.0 5

128 Hanse baltic Shipping GmbH, lübeck 64.0 76

129 Marick Shipping Company ltd., Monrovia/liberia 100.0 76

130 MARINE RICKMERS Schifffahrtsgesellschaft mbH & Cie. KG, Hamburg 100.0 76

131 MS bENJAMIN RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

132 MS FElICITAS RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

133 MS GEORGE RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

134 MS JOHAN RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76



in %Investment

through

135 MS RObERT RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

136 MS SANDy RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

137 MS WIllI RICKMERS Schifffahrts-Verwaltungsgesellschaft mbH, Hamburg 100.0 76

138 Rickmers Neubau GmbH, Hamburg 100.0 76

139 Verwaltung ASTA RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

140 Verwaltung ATlANTIC Absolute Return 1 GmbH, Hamburg 100.0 5

141 Verwaltung ATlANTIC Gesellschaft zur Vermittlung internationaler Investitionen mbH, Hamburg 100.0 5

142 Verwaltung ATlANTIC Structured Finance GmbH, Hamburg 100.0 5

143 Verwaltung CARlA RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

144 Verwaltung CATHRINE RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

145 Verwaltung CHARlOTTE C. RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 49.0 76

146 Verwaltung ERNST RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

147 Verwaltung ESSE Expert Shipping Service GmbH, Hamburg 100.0 1

148 Verwaltung FIONA RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

149 Verwaltung Fünfte Reederei NEuMÜHlEN 19 Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

150 Verwaltung JACOb RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

151 Verwaltung JENNIFER RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 49.0 76

152 Verwaltung JOCK RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

153 Verwaltung lAuRITA RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

154 Verwaltung lIlly RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

155 Verwaltung MARIE RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

156Verwaltung MARINE RICKMERS Schifffahrtsgesellschaft mbH, Hamburg (formerly: Verwaltung VANy RICKMERS Schifffahrtsgesellschaft mbH, Hamburg) 100.0 76

157 Verwaltung MCC Marine Consulting & Contracting GmbH, Hamburg 100.0 47

158 Verwaltung RICKMERS ANTWERP Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

159 Verwaltung RICKMERS GENOA Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

160 Verwaltung RICKMERS HAMbuRG Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

161 Verwaltung Rickmers Holding GmbH, Hamburg 100.0 1

162 Verwaltung RICKMERS SHANGHAI Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

163 Verwaltung Rickmers Shipmanagement GmbH, Hamburg 100.0 80

164 Verwaltung RICKMERS TOKyO Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

165 Verwaltung SEAN RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

166 Verwaltung SOPHIE RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

167 Verwaltung TETE RICKMERS Schifffahrtsgesellschaft mbH, Hamburg 100.0 76

168 Verwaltungsgesellschaft Einundvierzigste Reederei Alsterufer 26 mbH, Hamburg 100.0 76

169 Verwaltungsgesellschaft MS “ClASEN RICKMERS” Rickmers Reederei mbH, Hamburg 100.0 76

170 Verwaltungsgesellschaft MS “PATRICIA RICKMERS” Reederei Rickmers mbH, Hamburg 100.0 112

171 Verwaltungsgesellschaft MS “SEVEN SEAS” Shipping mbH, Hamburg 100.0 76

172 Verwaltungsgesellschaft Rickmers Reederei mbH, Hamburg 100.0 76

173 Verwaltungsgesellschaft Rickmers Shipinvest mbH, Hamburg 100.0 76

174 Verwaltungsgesellschaft Riverside Center mbH, Hamburg 100.0 5

175 Verwaltungsgesellschaft Sechste Reederei NEuMuEHlEN 19 mbH, Hamburg 100.0 76

176 Verwaltungsgesellschaft Siebte Reederei NEuMuEHlEN 19 mbH, Hamburg 100.0 76

177 Verwaltungsgesellschaft zweiunddreißigste Reederei Alsterufer 26 mbH, Hamburg 100.0 76

Non-consolidated associated companies

178 AAA Capital Game Production and Sales GmbH, Hanover 50.0 179

179 AAA Capital-ATlANTIC Investitionsgesellschaft mbH & Co. KG, Grünwald 50.0 5

180 AAA Capital-ATlANTIC Verwaltung Investitionsgesellschaft mbH, Grünwald 50.0 5

181 beteiligung MARIE SCHulTE Shipping GmbH, Hamburg 50.0 5



in %Investment

through

182 beteiligung MS “ClARA SCHulTE” Shipping GmbH, Hamburg 50.0 5

183 beteiligung MS “ISAbEllE SCHulTE” Shipping GmbH, Hamburg 50.0 5

184 beteiligung MS “NATAlIE SCHulTE” Shipping GmbH, Hamburg 50.0 5

185 EH1 Emissionshaus GmbH, Hamburg 50.0 5

186 EH1 logistik Verwaltungs GmbH, Hamburg 40.0 5

187 EH1 Management GmbH, Oststeinbek 40.0 5

188 EH1 Pictures Verwaltungs GmbH, Oststeinbek 32.5 185

189 EH1 uS-leben Fonds 1 Verwaltungs GmbH, Oststeinbek 50.0 185

190 Elly Suhl Speditionsgesellschaft mbH., Hamburg 25.2 65

191 Harper Petersen & Co. (Asia) ltd., Hong Kong 50.0 108

192 MS “AlTHEA” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

193 MS “PREP” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

194 Passat Schifffahrtsgesellschaft mbH & Co. KG, Hamburg 40.0 76

195 Verwaltung Harper Petersen GmbH, Hamburg 50.0 1

196 Verwaltung MS “AENNE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

197 Verwaltung MS “AlEXANDRA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

198 Verwaltung MS “AlICE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

199 Verwaltung MS “ANDRE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

200 Verwaltung MS “ANDREAS RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

201 Verwaltung MS “ANNA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

202 Verwaltung MS “CAMIllA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

203 Verwaltung MS “CCNI Aysen” Schifffahrtsgesellschaft mbH, Hamburg 50.0 4

204 Verwaltung MS “CCNI Chiloe” Schifffahrtsgesellschaft mbH, Hamburg 50.0 4

205 Verwaltung MS “CHRISTA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

206 Verwaltung MS “DEIKE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

207 Verwaltung MS “DENDERAH RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

208 Verwaltung MS “ETHA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

209 Verwaltung MS “HElENE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

210 Verwaltung MS “lARA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

211 Verwaltung MS “MAbEl RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

212 Verwaltung MS “MADElEINE RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

213 Verwaltung MS ”MAI RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

214 Verwaltung MS “uRSulA RICKMERS” Schiffsbeteiligungsgesellschaft mbH, Hamburg 50.0 76

215 Verwaltung MT “CHEMTRANS AlSTER” Schifffahrtsgesellschaft mbH, Hamburg 50.0 5

216 Verwaltung MT “CHEMTRANS EMS” Schifffahrtsgesellschaft mbH, Hamburg 50.0 5

217 Verwaltung MT “CHEMTRANS OSTE” Schifffahrtsgesellschaft mbH, Hamburg 50.0 5

218 Verwaltung MT “CHEMTRANS WESER” Schifffahrtsgesellschaft mbH, Hamburg 50.0 5

219 Verwaltung Schifffahrtsgesellschaft MS “VAlbEllA” mbH, Hamburg 100.0 4

220 Verwaltung Schifffahrtsgesellschaft MS “VAlDEMOSA” mbH, Hamburg 100.0 4

221 Verwaltung Schifffahrtsgesellschaft MS “VAlDIVIA” mbH, Hamburg 100.0 4

222 Verwaltung Schifffahrtsgesellschaft MS “VAlPARAISO” mbH, Hamburg 100.0 4

Non-consolidated joint ventures

223 Feeder-Kontor Shipmanagement beteiligungs GmbH, Hamburg 50.0 76

224 Feeder-Kontor Shipmanagement GmbH & Co. KG, Hamburg 50.0 76

225 RJV Second (Singapore) Pte. ltd., Singapore 50.0 75

Non-consolidated joint operations

226 Hanseatischer Treuhand Verbund GmbH & Co. KG, Hamburg 50.0 24


47 Auditor fees

Total auditor fees for the financial year 2012 are broken down as follows:


Annual audit 710 555

Audit-related services 9 12

Tax consultation services 50 58

Other services 989 239

Total 1,758 864

48 Exemption in accordance with Section 264b HGB

The following companies have exercised their right to exemption from the commitment to prepare, audit and disclose annual accounts in accordance with Section 264b HGb:

• ATlANTIC Gesellschaft zur Vermittlung internationaler In-vestitionen mbH & Co. KG, Hamburg

• ATlANTIC Structured Finance GmbH & Cie. KG, Hamburg • Einundvierzigste Reederei Alsterufer 26 GmbH & Cie. KG,

Hamburg • ESSE Expert Shipping Service GmbH & Co. KG, Hamburg • Fünfte Reederei Neumühlen 19 GmbH & Cie. KG, Hamburg • JACOb Rickmers Schifffahrtsgesellschaft mbH & Cie. KG,

Hamburg • MCC Marine Consulting & Contracting GmbH & Cie. KG,

Hamburg • Rickmers Genoa Schifffahrtsgesellschaft mbH & Cie. KG,

Hamburg• Rickmers Holding GmbH & Cie. KG, Hamburg• Rickmers Reederei GmbH & Cie. KG, Hamburg• Rickmers Shipinvest GmbH & Cie. KG, Hamburg• Rickmers Shipmanagement GmbH & Cie. KG, Hamburg• Sechste Reederei Neumühlen 19 GmbH & Cie. KG,

Hamburg• Seven Seas Shipping GmbH & Co. KG, Hamburg• Siebte Reederei Neumühlen 19 GmbH & Cie. KG, Hamburg

Furthermore, Rickmers Holding GmbH & Cie. KG and Rickmers-Linie GmbH & Cie. KG will neither disclose an-nual financial statements nor prepare a management com-mentary pursuant to Section 264b HGb.

Hamburg, 24 April 2014

bertram R. C. Rickmers

Ronald D. Widdows

Dr. Ignace Van Meenen

Prof. Dr. Mark-Ken Erdmann

Verwaltung Rickmers Holding GmbH forRickmers Holding GmbH & Cie. KG

179Annual Report 2013 Auditor’s Report

We have audited the consolidated financial statements prepared by the Rickmers Holding GmbH & Cie. KG, Ham-burg, comprising the income statement, the statement of comprehensive income, the balance sheet, statement of changes in shareholder’s equity, cashflow statement and the notes to the consolidated financial statements, together with the group management report for the busi-ness year from 1 January to 31 December 2013. The prepa-ration of the consolidated financial statements and the group management report in accordance with the IFRSs, as adopted by the Eu, and the additional requirements of German commercial law pursuant to § (Article) 315a Abs. (paragraph) 1 HGb ("Handelsgesetzbuch": German Com-mercial Code) is the responsibility of the management of the personally liable associate of the Company. Our re-sponsibility is to express an opinion on the consolidated financial statements and on the group management report based on our audit.

We conducted our audit of the consolidated financial state-ments in accordance with § 317 HGb and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (Insti-tute of Public Auditors in Germany) (IDW). Those stand-ards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expec-tations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the frame-work of the audit. The audit includes assessing the annual financial statements of those entities included in consoli-dation, the determination of the entities to be included in

Auditor’s Report

consolidation, the accounting and consolidation principles used and significant estimates made by the management of the personally liable associate of the Company, as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion based on the findings of our audit the consolidated financial statements comply with the IFRSs as adopted by the Eu and the additional requirements of German commercial law pursuant to § 315a Abs. 1 HGb and give a true and fair view of the net assets, financial posi-tion and results of operations of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group's position and suitably presents the opportunities and risks of future development.

Hamburg, 25 April 2014

PricewaterhouseCoopers

AktiengesellschaftWirtschaftsprüfungsgesellschaft

sgd. Claus brandt sgd. ppa. Vinzent GrafWirtschaftsprüfer Wirtschaftsprüfer(German Public Auditor) (German Public Auditor)


Further information

182 Rickmers Group vessels188 Contact/imprint

182 Rickmers Group

Rickmers Group vessels1

CONTAINER SHIPS

CONTAINER SHIP – 13,100 TEU (8 vESSELS)

Description: Container vessel, main engine Hyundai Wärtsilä 68,640 kW

Deadweight: 140,580 t Length o.a.: 366.00 mBreadth o.a.: 48.20 mScantling draft: 15.50 mSpeed: 24.0 kn

Total TEU: 13,10214 t TEU homogenous: 8,900Reefer plugs: 800

CONTAINER SHIP – 5,100 TEU PANAMAX (6 vESSELS)

Description: Container vessel, main engine MAN b&W 41,130 kW


Total TEU: 5,06014 t TEU homogenous: �� 3,400Reefer plugs: 454


Description: Container vessel, main engine Mitsui MAN b&W 45,680 kW



CONTAINER SHIP – 4,400 TEU (2 vESSELS)Description: Container vessel, main engine Sulzer 43,920 kW



1 Ships in asset management at Maritime Assets and/or operating management at Maritime Services; vessel parameters within classifications may vary; as at 31 December 2013.

Further information


CONTAINER SHIPS










Description: Container vessel, main engine Hyundai MAN b&W 31,990 kW



CONTAINER SHIP – 2,800 TEU (1 vESSEL)

Description: Container vessel, main engine Hyundai MAN b&W 25,270 kW




Description: Container vessel, geared, main engine Sulzer 21,560 kW



Further information

184 Rickmers Group

CONTAINER SHIPS


Description: Container vessel, geared, main engine Hyundai MAN b&W 22,470 kW

Deadweight: 30,554 t Length o.a.: 195.60 mBreadth o.a.: 30.20 m Scantling draft: 11.00 mSpeed: 20.0 kn



Description: Container vessel, geared, main engine MAN b&W 20,874 kW















Further information


CONTAINER SHIPS










Description: Container vessel, geared, main engine Mitsui MAN b&W 10,744 kW


Total TEU: 1,35414 t TEU homogenous: 918Reefer plugs: 450

CONTAINER SHIP – 1,200 TEU FAST FEEDER (1 vESSEL)

Description: Container vessel, main engine Hyundai Sulzer 17,760 kW




Description: Container ship, one of which geared, main engine MAN b&W 10,500 kW



Further information

186 Rickmers Group

CONTAINER SHIPS


Description: Container vessel, geared, main engine Hudong 10,400 kW



CONTAINER SHIP – 900 TEU (1 vESSEL)



Total TEU: 90714 t TEU homogenous: 530Reefer plugs: 70

CONTAINER SHIP – 800 TEU (1 vESSEL)

Description: Container vessel, main engine MAK 8,400 kW


Total TEU: 82214 t TEU homogenous: 507Reefer plugs: 150

CONBULKER

CONBULKER – 1,650 TEU/35K (2 vESSELS)

Description: Conbulker, geared, main engine Sulzer 12,000 kW



Further information


CONTAINER SHIPS

SUPERFLEX HEAvY MPC/30K (13 vESSELS)

Description: Multi-purpose heavy lift vessel, geared, main engine MAN b&W 15,875 kW


Total TEU: N/A14 t TEU homogenous: N/AReefer plugs: 150

SUPERFLEX HEAvY MPC/17K (2 vESSELS)Description: Multi-purpose heavy lift vessel, geared,

main engine Wärtsilä 8,730 kW


Total TEU: N/A14 t TEU homogenous: N/AReefer plugs: N/A

CAR CARRIER

CAR CARRIER (3 vESSELS)Description: Motor vehicle carrier – stern stamp/door-port ramps,

main engine Hyundai 14,220 kW


Total TEU: 4,900 cars14 t TEU homogenous: N/AReefer plugs: N/A

MULTI-PURPOSE CARRIER

Further information

188 Rickmers GroupContact/Imprint

Contact

Publisher

Rickmers Holding GmbH & Cie. KGNeumuehlen 1922763 HamburgGermany

Internet

www.rickmers.com

Contact person

Sabina PechGeneral Manager Corporate Communications

E-mail: [email protected].: +49 40 38 91 77 - 0 Fax: +49 40 38 91 77 - 500

Contact/imprint

Imprint

Concept, typesetting and consulting

Kirchhoff Consult AG, Hamburgwww.kirchhoff.de

Design

Alexander Wencelides and Atli Hilmarssonwww.studiowencelides.dewww.atli.de

Picture credits

Michael HolzHero langTom PaivaDominik ReipkaChristian SchoppePiotr StarenczakSabine VielmoJan Windszus

Translation

Michael AlgerDr Michael WatsonAlgerConsulting, bargteheide

Jim blakeRoderick DarbyWorld2World, Hamburg

Printed by

Druckzentrum Neumuenster

As at 24 April 2014

190Notes to the consolidated financial statements Rickmers Group

Rickmers Holding GmbH & Cie. KG

Neumuehlen 1922763 HamburgGermanyTel.: +49 40 38 91 77 0Fax: +49 40 38 91 77 500E-mail: [email protected]

maritime values - rickmers group€¦ · the rickmers group is an international provider of...

Documents